It was hard to digest at first, but after watching how Sword/Shield is probably the biggest upgrade on a Pokemon game, I believe the cut is justifiable, or worth it at least.
However, the greatest beauty of Pokemon games is the after game, which will be severly downgraded by the big cut. I just hope there is more in there than just the 400 Gallar Dex.
I believe the chances of getting the rest as DLC are very high. We are live in the add-on era, and for a game that is selling more than 10m, resources and effort is not an excuse. You get our money, hire more and do it. As for the balance issue, they can always cut moves and downgrade overpowered pokemon to keep the balance. Pokemon is about Gotta Catch'em all!!
don't mind my username, that was more than 10 years ago, I'm a different person now, amazing how people change ^_^