I've seen this notion of "video games can't tell good stories" and it's one of the most pretentious, misguided, boomer ideas I have ever seen on the internet. Video games are a medium, just like books and movies, and there is no reason why they wouldn't be able to tell good and interesting stories. Moreover, when you make this claim, You actually give a game a pass for bad writing and story when you really shouldn't. OwlCat seem to care about their story a great deal. the fact that they aren't there yet doesn't mean they shouldn't try.
I generally agree with you here. But, it is also possible that maybe, just maybe, writers have run out of interesting ideas/hooks to write around. I definitely see this in contemporary movies and TV shows. That's why everything in those two mediums these days are "remakes." So maybe the same thing is now beginning to happen in video games, especially within specific genres of video games. I mean, within cRPGs, how many truly new and unique stories have we gotten in recent years? It's always some variation on a common story recipe.