I know my opinion is unpopular on the topic, but I feel RT is weird, because it is supposed to bring some huge changes to visuals, but I feel like what we have been seeing in practice for the most part is developers adding random puddles for "woah reflections" and added visual noise everywhere which is more distracting than exciting in my experience. Even examples like control that I often see being brought up doesn't seem Ike as massive of a difference as a no try to sell it as.
Basically I'd rather see additions that are less subtle and will cause me to say woah more at scenes not being possible before. Give me huge war sequences, give me fully explorable sprawling mega cities, give me the spectacle and detail of huge monsters. I don't want to miss out on those sequences in next gen games because devs chase RT and have to decrease the scope of their games for it. I am very interested in the usage of RT for audio though.
You confuse graphics tech and assets and game design.
We won't see giant detailed cities because they are insanely difficult to make. They take time and money. Ubisoft is capable of it with a dozen studios all around the world but even that's nothing like what you described and it clearly limits their creativity when you need to coordinate that many people.
This is the reason we won't see stuff like the tech demos early in this generation. These look that good not because of the tech but because they spend hundreds of hours on one small scene, placing every piece of glass to make it insanely detailed. We won't see that in open world games. The news of RDR2 crunch? There was a reason for that.
Ray tracing is tech. It can be relatively easily implemented and comes with basically no cost by scaling up.
This is why we aren't seeing most of the stuff people keep pointing towards every single new gen. Tech demos. In very linear games, maybe, but anything bigger, nope.
Maybe when we can generate assets better, but even this gen when we just started doing that it was met with insane backlash. Hand-made environments of the scale what you are describing has nothing to do with tech. At least not yet.
(Btw I completely agree with you, I want to see those too a lot more than raytracing. That and good destruction and physics, but that has its own problem nothing to do with tech.)