I do think a huge world with an engaging and dense design can still be made worse with size. In some games like Skyrim, Breath of the Wild or GTA 5, you could probably drop me anywhere and I'd know where I was, half due to good and differing region design and half because the map isn't that big.
Back in 2015 I'd dream of a GTA 5 expansion that adds San Francisco and Las Vegas to the map, turning the north and east of the map in to a 500 yard straight of water, but in reality, two more large cities and their surroundings suburbs and wilderness would have never kept it's memorability like the first region.
I saw an announcement from Sega a couple of months ago saying that they're looking to return to their MO: Being the punkrock to Nintendo's mainstream pop. I think this is really the difference between Sega's Sonic Vs Paramount's Sonic. Paramount want to make a mainstream Sonic movie and mainstream mean filing off the rough edges.
I don't think it's got anything to do with today's political landscape as much as the nature of all high budget cinema. Never mistake the film industry as anything but venture capitalism, with art being incidental and anarchic messaging being a facade and only existing for profit. Any for-profit art, particularly a $122 million cost piece of art, is going to only care about the most profitable choices.