I think yes, if they dont waste a lot of time and resources on making 999 versions they can invest their time into designing the open world better and richer.
You can chalk Witcher 3 being so good because the stories were basically written for them at that point. Otherwise Witcher 3 is super average at best. I say this as someone who owns the game on 3 platforms .
What do you mean written for them? They had the lore from the books but the wrote everything themselves, the game doesnt copy anything, its a games Based on the books not an adaptation of them.
Also Cyberpunk 2077 is based on the PnP Cyberpunk game by Mike Pondsmith and no offense but its one of the weaker Cyberpunk themed lore, it doesnt compare to Alita, Ghost in the Shell or Blade Runner and there's many more better worlds they could have adapted.
Witcher 3 strengths were that it came at the right time, in a time where open world rpgs were becoming dull, it came at a time where people wanted more story-driven games, it came at the era of game of thrones craze.
Also take another point, Witcher 3 is bigger and more consistent than Cyberpunk, has better characters and story, has better world. I also belive that Witcher 3 has the best written quests in any open world game, its THE thing that will make the game stand the test of time.
One final point to make is that Witcher 3 came in May 2015, got fixed quickly within 1-2 weeks, got 16 free small DLCs released within 1-2 months, and just like that at October they released Hearts of Stone, one of the best stories in any game with 10-15 hours, improved boss fights and content, then in May 2016 they released one of the best expansions ever Blood and Wine 30-40 hours of content with high quality. (That all happened in a span of 1 year)
Now compare that with Cyberpunk that was released in December 2020 and we are almost 1 year later, with 1 free dlc and just few patches to fix the game and they are not done yet, no expansions and nothing.
Witcher 3 did a lot of things right, Cyberpunk didnt. And take into consideration the hype, the marketing, and ofcourse the time (2015 vs 2020) which will be a factor in expectations vs what we got vs budget.