Unless you mean purely the design itself, I was getting at how pokemon has to deal with the switch limitations, so their environments are going to be more limited in scope or complexity. If you meant the aesthetic then idk I like the kalos region's designs
Okay, let's pretend for a moment we know nothing about the mechanics of Pokemon, or Palworld.
First, let's look at the picture of Kalos's wild zone again:
This is a straight, flat corridor. There's no terrain variation. The buildings don't seem to have entrances you can enter, and likely seem to be walls preventing you going in ways the designers did not want you to go. There's a few things that you may or may not be able to engage with, like the bus stop, the chairs, and the car, you might be able to catch the rabbit, and there's some lights in the distance, which might be important, but from what we can see here, there seems to be very little in the way of "exploration" or setting your own course that you'll do here.
Now, the screenshot of my Palworld game:
This is a much more open environment. There doesn't appear to be any visible walls in any direction, and you have much more choice in the direction you can meaningfully travel. There's a lot of variety in terrain height, slope, and you might decide to explore all these areas to see if there are treasures or hidden things, or you might rush on to see what's over the crest of the hill or down in the valley. There doesn't appear to be much to engage with, but that's because I came from that way, collecting and capturing everything I could - a few Pals, chests, and so forth.
There's stuff that Pokemon is good at, but open exploration isn't one of them. And I'm not really buying the "it's on the Switch" explanation, because the Switch also has Skyrim, Xenoblade and Breath of the Wild, so I'm going to opine that the problem is with Pokemon, rather than the system itself.