I am greatly against it. Most of the objects are unimportant (empty containers, physical objects you can interact with etc). At the moment the highlight shows you important objects among junk. Highlight everything, and you highlight nothing. It's not like og BG1&2 when the world was 2d map, and all interactive objects were placed there manually and to be interacted with.
D:OS2 highlighted everything and result was, what I liked to call "object diarrhea". Though perhaps, ALT could still show name plates for important object, and give other interactable objects some kind of highlight? Or have two seperate highlight buttons.
These awefull text box with items names that appear all over the screen when you're next a table or something should definitely dissapear, replaced by highlighted items.
I like the idea of having items highlighted instead of seeing their names.
Also, I think that they should add a "Search" feature that opens a menu showing all of the items in a limited area around the character.
As for having too many things highlighted, they could just give a way to customize what's being highlighted in the options menu, like in loot-focused games where you can choose to not highlight items based on rarity.
For this game, the options might be:
Containers
Interactive objects
Normal items
Quest items
I dislike how the artists "decorate" a room w/ books and vases and they are all appear to be lootable and are empty. Why can't they disable the interaction if they are just for decoration?
The designers seem to worry a lot about the "flow" of combat, but ignore other things like this that make the game a real chore.
I'll concede that I open everything because of FOMO.
The way that I think it should be is that most filled containers should have a different appearance from empty containers and should have the empty appearances when all of the items are taken from them.
Boxes should have ajar lids, bookshelves should be empty, book piles should be removed or have the top book be opened, etc.