Depends

AAA: Only bigger and more prone to fail spectacularly as their "safe" bets and rabid monetization blows up in their face
Indie: Better.

Both. And it all has its place. Though plenty of games in the smaller scale. Mostly indie. Anyway, for all fun games to find.

Better is subjective. Not everything can get infinitely better. And sometimes diminishing returns means you need huge leaps to see differences, but maybe only incremental improvements are realistic.

Bigger? Sure, more powerful systems are capable of bigger worlds. Large storage and not relying on physical media allows for more data. Why wouldn't some games take advantage of that?

But simple games can be more fun than big ones