I think the fact that Sony cinematic games went from selling 3-5 million in the PS3 era to 20-30 million in the PS4 and now PS5 era shows that there is a demand for these narrative driven high production value games even among casuals.
The only problem is that now those games went from 15 hours with maybe 2 hours of cutscenes to animate, light, and polish to almost 6 hours. Thats like directing two LOTR movies. I am sure there is a massive cost to producing these fancy cinematics and the length of the game is simply exacerbating the problem. GOW actually has characters constantly talking through out its 40 hour campaign. Like literally during every single mission, every single fake loading screen, every single fight with enemies, they are talking and moving the plot forward outside of cutscenes. That was great in uncharted 2-4 which were 10-15 hours long, but now with TLOU2 being almost 30 hours, you are not only producing 2-3x as many cutscenes but also voicing and coordinating 30-50 hours of voice over on gameplay.
i say go back to 15 hour TLOU1 length campaigns with additional modes like No Return, Valhalla or even some pvp providing more value. PvP doesnt have to be GaaS you support, just an additional mode to give you an extra 10-20 hours of fun with the combat system. It worked for Uncharted 2-4 and TLOU1. Not sure why they changed tactics. Value was NOT an issue in the PS3 era with its 8-10 hour campaigns and multiplayer modes.