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Larian drops Series S split-screen as "solution" to bring Baldur's Gate 3 to Xbox this year
(www.eurogamer.net)
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OK so this is now offtopic for the conversation, but...
To some extent, it's authoring tools which affect how they work. A procedural materials pipeline can help them compose on top of already procedural content. In a way, you could see PBR as a part of that pipeline because PBR materials are physics modelled. Having said that I do take your point, even building out that pipeline takes time. Creating a PBR materials library is not super easy, and obviously organic stuff is very hard to model as a material.
From watching blender modelling, I thought the pattern was to have minimal rigging on the base mesh and then tesselation via normal maps + subdivision (apparently this is very doable even with sculpting). Obviously for animation you need a certain quality but beyond that I thought everything would be normal maps, reflection maps, etc etc.
I'm not an artist - my 3D modelling experience can be summed up as "none", so I can't really answer your last point. I know for certain that we don't use normal maps to the extent they could be used, and therefore have way more detail in the meshes than they would need to have. I'm also pretty certain that we don't do any tesselation on player pawns, and I think (but am not certain) that this is due to some engine limitation (again, don't quote me on that, but iirc Unreal doesn't support tesselation on skeletal meshes on all our target platforms).
TIL for no tessellation on skeletal meshes. I hope over time Unreal / Epic will put some effort in on minimising memory usage, even though I know they "just" got done with Nanite and friends.