For me, what I like to see in an RPG, is the ability to play a game multiple times and have notably different experiences, both in terms of play-style and narrative. It should make me want to go back and play again to see what I missed or how else I could do it.
The idea of having multiple ways to deal with a quest, and having that impact further story beats in meaningful ways is what I want to see. What i don’t want to see is meaningless scale full of nothing but filler.
I don’t think dagger fall is the best example because much of its size was just procedurally generated landscapes. The ability to actually specialize and complete quests in unique ways, as well as a branching story, is great. Mindlessly massive map, not so much.
I hadn’t even thought about preferences for photorealism being a streamlining thing, but it does fit the idea.
I think it’s also a risk aversion thing as well. Few people will complain about a game looking realistic, so it’s very low risk from the point of view of publishers/investors/marketing. Most people will prefer a unique and stylized look that meshes with the game, but investors and marketing teams can’t be sure in any given case, so it’s written off as a risk.