Retrospectively speaking, Xenoblade 3 is the most overrated of the franchise and is the worst of the main games.
It's still a great game, but it feels so shallow and lifeless compared to 1 and 2. Trading world building and the likes for narrative purposes was a bad idea. The villains weren't good and Noah and Mio were the most boring protagonists ever. It's no wonder XB3 didn't have the cultural relevancy that 2 had.