Handcrafted would be great if they wanted to do them but also might be very expensive?
There are some that are "handcrafted" (meaning staged, with set character placement and camera shots). I wouldn't say it's a money problem (Larian is investing a crap-ton into this project) but I don't see how it could be logistically possible.
Heavy cinematic RPGs come with heavy restriction to character creation. Cinema has language - if your character has varying physical apperance (height, build, posture) and varying attitude, personality, worldview, objectives, how are you to direct their presence through a cutscene? For example If you want to establish PCs control over situation, how do you effectively frame human vs halfling to achieve that effect?
As far as I know both Mass Effects and Witcher used some kind of automatic generation as baseline. There will always be cutscene who reqiure more or less human touch. But in those games main character isn't very variable, which gives devs an ability to make choices. How much "staging" is happening, in lets say Witcher, I don't know (do all conversations happen in pre-determined conversations? Is it possible to talk to an NPC in an unintended location? - I never thought of those things when playing Witcher, which is indication that the system worked. I constantly thought of those things in BG3, which means the game has a long way to go).
This post and video has been already mentioned, and it more eloquently explains the problem. Stuff like Goblin's attack on the Druid grove or meeting with Raphael is what really worries me. Those cutscenes are focusing mostly or entirely on 3rd party characters, so our PC or party is of little revelance. And they still not effective. It could be that they will get more polish and attention before the release, and that conversation system will overall be improved with more expressions, animations, better shot framing and staging etc. But I am sceptical.
