My friend says BotW2 has a similar mechanics where they made all environment items function like parts in the vehicle builder from Nuts and Bolts. but you can use magic to make a golem or some shit. I don't know anything about botw2 but I heard people made rocket launchers out of trees and stuff?? seems like a good idea that could catch on.
I always thought the concept would work well on more than just a platform Banjo game like if you had more fleshed out mechanics and interactions with more physics based stuff like Half Life 2. Rare is also one of the few studios I haven't totally given up on as they seem to actually care about the quality of the game (Sea of Thieves) which I know did have problems before but as far as I know its one of the most popular active games right now, even if they are controlled by some of the worst in gaming.
Sea of thieves I think with how the boats (a VEHICLE) work, they have a good eye for doing stuff of that nature I think. That kinda makes sense. The boat/water mechanics in Nuts and bolts were pretty kewl from what I recall.