The idea that a more advanced rendering engine hinders fun gameplay is total fucking nonsense. Gameplay and graphics teams are separate from each other, not antagonistic. Plus, this saves MASSIVE amounts of time in production, since you can use hi-poly models directly. https://twitter.com/OneyNG/status/1260689653201428480
The amount of time this saves in production trumps whatever proprietary engine Nintendo uses. There's a massive amount of shit that devs need to do manually by hand, like bounce lighting, normal maps, LODs, poly optimization, and this just throws all that shit out the window.
There's nothing stopping people from making stylized graphics in this engine, it will make the production of stylized games faster if anything, and allow for new stylized art styles.

Imagine what kind of stealth games you can make with 100% dynamic lighting!
The thing stopping people from making fun gameplay isn't graphics (God of War 2018 had amazing gameplay), it's a lack of understanding of form. It's a lack of development in gameplay design theories, plus the idea that realism requires boring gameplay.
Unreal 5 isn't another factor stopping artists from making fun games, it makes EVERY type of game easier to make. Plus it has ridiculous royalty terms (only millionaires pay royalties!), and it's completely public and free. The most advanced rendering engine ever, for free.
Pixar is stylized to hell, and they are world leaders in render technology R&D. More advanced graphical engines lead to new art styles becoming possible.
I am the "gameplay matters more than everything else" guy, to an extreme that makes people hate me, and the idea that graphics and gameplay are antagonistic to one another is absolute horseshit.
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