If every place/area only serves one purpose then the game should be linear. Some of my favourite games are the old Gothic and Gothic 2 RPGs. They are open world, but tiny compared to modern RPGs. They dont have "areas" with a set difficulty that you can complete and then move on, instead the map is like a skeleton of fairly save roads and settlements and the further you go away from the roads the harder it gets. So you see the whole map in the first chapter but have explored very little of it. You always return to the same areas and they feel like home. And every chapter of the story adds new enemies, quests and events to all areas of the game. All of it is hand picked. No "radient quests" to trick you into going to an completed dungeon again, no random encounters on the roads to make travel through the world feel less empty...

IMO, they have the best open worlds I have ever seen. The studios follow up open world games (Gothic 3, elex 1&2) fell flat because they tried to be huge as well and felt empty as a result.

Working with constraints does actually produce gems. Fallout, farcry, GTA, skyrim just throw billions of dollars at a project to make it huge. But everything there is is just a set piece to be looked at once and be discarded ...