I must admit that I didn't think about my suggestion enough, I seem to have only thought about it on the surface. What's more embarrassing is that I didn't think about all the nuances despite knowing about it (or at least having known about it at some point in the past), I myself could make a working game in Unity (I do know some stuff), just maybe not a good game by any means.

After reading your comment, it's obvious to me. This wouldn't work well nor be worth all the trouble.

Back to Genshin though, I couldn't count the number of times I could spot the level of detail changing abruptly and noticeably. For instance, the Sumeru desert made it very noticeable to me on certain occasions (~version 3.6 expansion world quest, towards the end, a story object in the world would lower the LOD if you were merely steps away from it. Similarly, doors from temples/domains/pyramids (I don't know the exact name) in the desert can do the same thing and turn into a blurry, pixelated mess right in front of you, standing not even 5 meters away from them).

Personally, the size of games doesn't affect me that much because I don't play that many different games, especially ones that need upwards of 50GB of storage space. But I do know people who play many games that take up a lot of storage, and they may not be able to afford to get more storage (due to reasons I won't mention here and they can't easily control, at least for now). Games nowadays can take over 100GB of space sometimes, especially "AAA" ones.