It actually could be benefited from improved performance, for instance the introduction of the sky and the depth was only possible because of performance improv

It actually could be benefited from improved performance, for instance the introduction of the sky and the depth was only possible because of performance improvements from Switch (note that BotW's target platform was Wii U, so Nintendo intentionally limited the game's scope to the overworld). I think a sparsity of sky islands could be partially attributed to performance issues. Those need to be visible from almost everywhere, so cannot be really culled out from the drawing pipeline. Even with aggressive LoD, this will take a considerable performance budget if you put hundreds of islands given a high level of drawing distance requirement in TotK. I also noticed that TotK has lots of unusually aggressive performance optimization which seems to be done at the very last moment, and even with that a considerable level of frame drops on specific areas. I suspect this to be likely due to the reported delay of the Switch successor. They would still launch it on Switch with possibly worse visual fidelity but that would be fine if they got the successor at the launch time. So yeah "how to use it" is what really matters, but having more performance budget can allow more freedom for developers. It's a really nice time to have the successor platform for Switch, possibly with backward compatibility.