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Every turn-based JRPG, Pokemon included, is always supposed to be a simulation, not an actuality. When you spam Earthquake on wild Pokemon to level up, you aren't actually doing that ad nauseum; you're simulating a training regimen for that Pokemon. The towns, caves, and forests you explore may technically be small, but they are definitely abstractions made to simulate much larger areas. In Mt. Moon for instance, it felt huge in the original games and you could get lost in it. In Let's Go, it's like a handful of corridors. Kanto itself in Let's Go lost all its magic with the move to 3D. The entirety of the region seems like it's the same size as a large Zelda dungeon, not the sprawling country that it felt like in the original games.