Video is way off base. The game's map is based off maps from the TTRPG, so they were going for accuracy to the source material. Also, having a smaller, denser map doesn't necessarily equate to more story/gameplay. You still need writers and programmers to do their thing, even if the artists don't need to make as many assets.
Also, fast travel was in the game since launch. Sure, you had to unlock each fast travel point, but that's pretty standard in open world games.
Personally, I liked Night city as it was. It's probably one of my favorite game worlds to exist in. More often than not, I found myself hopping on my bike and riding to my next destination while listening to the radio, rather than fast traveling. Screw cars though, lane splitting is much faster.