Maybe a healthy middle ground: cutscenes for important stuff and the rest can do without them. It would help set ressources free for other important stuff, like working in a meaningful reaction system for example.
How would that work? Some cutscenes don't have dialogue, just a character delivering a single line. We would not lose much if those interactions don't have a cutscene. But still the line would need to be audible, and it would need to be supported by appropriate movement. If not, that would interrupt the flow of the game. So if sound and movement are indispensible, all that remains for a cutscene is setting the camera. And perhaps camera position, focus and framing need not even be set manually for each encounter. Probably there are sensible defaults.
So my point is: it is quite possible that all the cutscenes combined take only a very small amount of development time.