You are going to tell me that a simple fighter in its tiny 3D box requires more power than an open world game does while also using the newest Unreal 5 engine? And we have seen what U5 is capable of with even less polygons because of its design. You are making it sound like fighting games require this insane power to run these polygons, while we have games like Horizon, GT7, Demon Souls, Elden Ring that have to generate millions of polygons a second for the vast open space and make it look like there is no pop up while we have a large distance view.
MK 11 is a PS4 game, Tekken is a PS5 game that still doesnt know how to take advantage. The fighters get battered and damaged over time, if they have certain equipment on them, it will get knocked out from them and stay off of them until the match ends. Really that is your argument, because it doesnt have multi levels on a single stage? The same levels that have low poly textures, ground tiles that break and magically reappear while MKs usable content on the stage stays destroyed as the match goes on, the stages are dynamic meaning there is a ton of stuff happening in the background as the fight goes on.