I mean, I don't see why you can't have both. It may be an experiment, but I think Mario 3D World + Bowser's Fury did a great job of marrying the two and I hope to see Mario games go in that direction in the future.
But if I have to choose, I guess I would prefer tighter level design over open world games. Only because most open world games prior to Breath of the Wild tended to bore me to tears. Though, BOTW has really changed my outlook on open world games. But in general, I prefer tightly crafted levels and worlds that you can tell were made by hand and not a displacement/height map. By this I mean, most if not all Open World games use something similar to these 2D black and white maps to create 3D terrain as the base for their world. So if you've ever seen underneath the world in Breath of the Wild you'll find that the geometry is stretched and pulled up or down to create the terrain.
But I digress. If you had asked me this before titles like Breath of the Wild and Bowser's Fury I would have said Tight Level Design, but now as long as it's done right then I would rather Open World. It really depends on what the developer is going for and how well they're able to execute their vision.