Precisely. The big games have all done super well on PS4, so there's no reasons for RE, FF, DQ, and MH to skip PS5. There's going to be lot of multiplatform games as Japanese developers consider the West more and more with their games.
And small-medium sized titles catered to Japan will be on PS4/Switch/PS5 which is the natural progression from these titles being PS3/Vita/PS4.
Sony will probably just be content to sell ~10 million consoles in Japan and 100+ million in the West.
When the herd loses its way, the shepard must kill the bull that leads them astray.