I think you’re on the right track, but I think it’s also because recent games did better with similar ideas. People shat all over Mass Effect Andromeda, but it hid loading screens behind interplanetary and FTL travel that was actually visualized. In my brain, I know they’re cutscenes to cover for loading data, but it’s enough to take you out of it being a “game” and allowing you to suspend your disbelief. It’s hard to suspend disbelief when there’s a loading screen constantly in front of you.