One of my favorite things about Final Fantasy XIV is being able to teleport as I please. There’s a small fee associated with it, but it’s so much more convenient (and, by extension, enjoyable). To me personally, it’s never made the world feel small. Eorzea is still huge and has a lot to explore on foot or via flight.
The same goes for flying. I don’t understand why the solution to the world feeling “small” for some people (again, not for me) is “make traveling inconvenient and tedious.”