>>58999961Pokémon availability is just one part of regional identity, though it is a big part of it. Alola certainly has a strong identity, even though it has 400 Pokémon available; while Paldea doesn't really feel like anything at all (and its dex also has 400 Pokémon).
I think there's an equilibrium to be reached, though. 1025 hacks/fangames are excessive in that there's basically no overlap in wild Pokémon distribution inside a region (i.e., every route has completely different set of Pokémon), which makes the environment feel disjointed and uncohesive.
That is to say, that Pokémon distribution is a part of environmental storytelling in these games. And while they're just one piece of it, they're still an important piece (considering that these creatures are the most important part of the games themselves...)
Many have said this, but BW2 had pretty good distribution, with 300 Pokémon in its dex.