There are already some huge maps out there, Just Cause 2 and 3 both have maps at around 1000km2, and those games are beloved by their players. But if the next Cyberpunk game was announced with Night City now being the size of an actual large metropolis, say like New York, would you say that’s too big? What determines what “too big” is?
Yeah, you’ve identified the problem. You might be able to do it with a non-massive multiplayer game, with significantly lower resource needs.