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Nah, I'm really pleased with this shift in direction from Square Enix. To be honest it was only in the past few years that they really let up with it - in the 7th gen they'd done AAA (consoles); smaller games (mobile) and mid-sized games on handhelds, with PSP occasionally getting something I think you could call AAA (Crisis Core/Type-0).

Then around... 2012 maybe? They shifted into this ridiculous state of AAA or mobile, where Tomb Raider's 3.4m was disaster etc.

I love mid-tier JRPG's. It's what companies like Falcom and Gust thrive on. I'd say Square-Enix are a step above them with production values, but not by much really. It's just whether it's a worthwhile venture for them, because obviously your Compile Hearts and Nippon Ichi's see massive success from selling 50k copies of a cheaply made game, whereas it's just a drop in the ocean for Square Enix and I'm not sure it's worth pursuing.

Still, with the right IP attached (see: Dragon Quest Builders) I think it's worth carrying on with.