that's not an issue of the hardware but an issue of lazy ports.
gone are the days where ports got adjusted and remade assets fitting the target hardware, be it upgraded by hand like in the Xbox ports of GTA3 and VC, or be it downgraded by hand as in Resident Evil 4 on PS2.
nowadays what happens is these lazy ass ports just use the usually terrible looking mipmaps and low LOD models the games already have and have them be the highest possible LOD.
these assets were not meant to be seen close up, and that's why they look like absolute shit.
ontop of that whole parts of the graphics are removed like foliage etc.
now let's take a look at an RPG on switch that has an even bigger open world, runs fairly smooth and still looks really good... I'm talking of course about Skyrim
at 900p and a pretty stable 30fps, running on the same hardware as this god awful port of Outer Worlds.