I really like that approach he's talking about. And I guess it stimulates the development team better (as in, people in there could jump to higher positions in a future game if they show talent in areas they're not hired for (like, a concept artist giving good feedback for the main scenario, the game design...))
I'm a bit worried about the western open-world part, though. But the following phrase mitigates that worry a bit, as I consider The Witcher 3 one of the best games I've played in quite some time, despite its flaws. Believable, interesting and big (overwhelming in some parts, though) world and less like your generic samey one.
A FF must have an interesting world and a plethora of good side characters, quests and places to visit. Flesh that out, make them as unique and fun as possible (not only the main sceneario) and everything will come up Milhouse.