I haven't played it yet (A second play through of BG3 sounds more appealing right now), but in general for an singleplayer RPG I would prefer a small full setting to an empty large one. If the environment has almost nothing of interest in it, then I'm going to just be glued to the objective marker, which while not a deal breaker, definitely hurts the experience. In a more curated environment I would ignore the objective marker and go off in a random direction. This means my experience is more unique and gives a proper sense of exploration which can make the game feel bigger even though it is technically smaller.