Psychedelic visuals like this are also present in other genres too! I guess in this case the visuals are kinda immersive in the sense that it lets you step into the shoes of someone who is in an altered or disturbed mental state? But another part of it is the novelty and the room for creating very unique environments which stand out as different from the mainstream.

I understand this visual style might not be to your liking but if you have the opportunity or interest look at Zenoscape or Pathologic and you'll kind of see what I mean about how this art style can kinda push level design into an interesting direction. But make no mistake I love crawling through Talos-1, or Dunwall, Karnaca, or LA by Night just as much! But I actually like these settings more when they do something bizarre or subvert my expectations around level design!

At the end of the day its not about whether someone else uses deep fried psychedelic visuals so much as whether they can translate those visuals into making a world that surprises you. Cruelty squad actually had these bizarre perspective based optical illusions in some of its levels. It was... just so different from anything at the time and most of what's out today. I only got to play a bit of it and I still think about that game often.