Problem with large open world is that, amount of content you can actually put in the game doesn't change regardless of how large the map is...
This means that density and immersion drops if maps gets too large. I honestly felt this on Fallout 4 as well, which is receiving similar score as Xenoblade X.
If my guess is right, Monolith Soft tried to expand world large as possible, not realizing amount of time and resource they will have to fill them isn't changing.