All of this is true. Especially systemic interactivity it beyond anything that we have seen in an RPG before.
Its not though.
Arcanum had way more reactivity than BG3 in general. And in Witcher 1 your choices in Act 1 modified quests in Act 4.
In Fallout 2 low intelligence characters had their own dialogue with often different effects. Same goes for the vampire clan with mental issues in Bloodlines. And there choosing the monsterous looking clan also lead to having to play quite differently than other characters.
What you are talking is narrative reactivity/branching paths. That's what Tim talked about when discussing New Vegas, and yes, I don't think BG3 is particularly great in it. Witchers offer little player agency - you follow a pre-designed quest and choose option A or B in branching dialogue. THIS IS NOT A CRITICISM! W's are very well written, and narrative reactivity is well done, but those are not games that give players agency over their actions or choices. Arcanum would be probably my Yes, Arcanum pick as 2nd closest, and I do think it is interactivity and reactivity to be more effective game overall, but Larian's games ARE more interactive and offer more player agency than competition. I can't think of a game where you could use your clothing as weapon, or modify enviroment, burn webs from underneath the spider, stealing key items during cinematics, creating shortcut by stacking boxes on top of each other etc. etc. I am not BG3 defender here - but as far as options available to player at any given time, it is very impressive. Whenever the game can handle this amount of choice, when it comes to balance or narrative is another matter entirely.
You CAN come up with variety of characters, and you have tools to play as those characters, and game to go on pretty much no matter what you do. I think narrative side has problems, and combat is unbalanced to the point of not being fun for me, but it doesn't mean the game doesn't have some stong points.