People have said this since ps3 generation, it means nothing.
Yeah well just a couple days ago you couldn't even see the difference in quality in rebirths models from the low poly rebirth ones so that means about as much as that other guys partner saying things can't better.
A game like Horizon and probably avatar are fine examples, but the scale of everything else you mentioned just it silly to compare compare to the other. Not only the scale of the world but the scope of the project and its gameplay and graphical features in general make FF7 a much more ambitious project than something like Alan wake, that games enemy variety is just abysmal.
FF7R has ugly, glaring issues but there were many good reasons for large scale AAA games to not just immediately switch over to UE5 mid development, the freedom to attempt to do so is definitely a perk of those smaller games from smaller devs. Those "build an open world in 2 hours" videos are good for making portfolios and learning the tools but making an actual open world for an actual game with gameplay and graphical constraints is a completey different scenario.
The FF7 devs fucked up in a lot of ways, But sticking to UE4 was likely a good call. Unless you look at it from the perspective that maybe the issues it caused could force them to delay the game for a year or 2. But a consistent release schedule is not a negative.
Get back to eating crow.