While this is true, "big" games require a small legion of 3D artists. Very few indies will ever come close to maxing out Godot's 3D abilities.
If you "need" a big engine you also need a multi-million dollar budget.
Ok, a legion of mediocre technical artists, or one really talented one :)
Edit: though I'd be curious to see if I'd recognise it as an Unreal title without pre-knowledge, of course :)
If you are a small indie team, you'd do well to pick and engine that has a strong community, momentum, and perhaps most importantly - one that you're willing and able to dive into the internals of to fix/debug things when they go wrong.
The recently released Sonic Colors remake should be mentioned: https://www.youtube.com/watch?v=D-RnhgZCqn4 (and on the latest Xbox, runs at 4k@60hz https://www.youtube.com/watch?v=GsMAIXVavI4) Apart from maybe using too much bloom, the visuals are great. Using a different engine wouldn't magically make them better, let alone far superior. At best different engines might give different tradeoffs to allow more efficient use of artist time (e.g. less rework like lowering poly counts due to better performance/pipeline, or having certain assets or effect shaders pre-built, or being able to have "more" per frame, etc.).
I brought it up because surprisingly they used Godot 3 for the graphics backend. Well, they seem to have modified it to some extent and have the original game's code in there, but apparently not to such a degree that vanilla Godot couldn't open up scenes. Even though the lead Godot dev doesn't even think v3 is really appropriate for such a game due to its limitations (the "just around the corner" v4 should be more suitable, though), and they've had some backlash with bugs or poor performance (especially on the Switch version) that have necessitated patches, I still think it counts. I remember being excited for v3 in the past, because it brought Godot up to par with physically based rendering like everyone else. It can still fall behind other engines in a lot of other ways (stability, performance, ease of platform porting, pre-built things...) though a lot of indies seem to find it winning in some ways too (like ease of development).
I do agree with you though that the Amazon taint shouldn't really be enough to sink Open 3D. Still, I think it's going to take a few years for it to find its place in the current ecosystem. Though it's a very real possibility that place might be irrelevance.
In this situation, the a reasonable thing for many small studios was to cobble something together from parts that were available: bullet, Ogre, OIS etc. There was barely any out of the box tooling for these libraries and I doubt that many teams invested a lot of time to write custom editors that were better than barely workable for their immediate project.
This situation ended when Unity took over. Compared to all the half baked in house solutions, its all in one package with all the painstaking integration work was pretty attractive.
I may be a bit biased since we are developing one of the bigger (in terms of players not in terms of visuals) VR games made with Godot.
For example, Godot had hand tracking for the Oculus Quest, 3 months before the big two and even now with the movement to OpenXR there is already a beta that supports passthrough while I still hear my peers using Unreal complaining about being left out over Unity devs
Godot's 3D support seems promising, but at a very different level than the "big" engines. Not sure I'd want to pick it up for a serious project just yet. The other options like Ogre seem ... kind of bad, if their industry track record is to go by. Ogre in particular seems to have had a brief golden era, where a few commercial games used it, but in every case I know of, sequels to those games abandoned Ogre for unity or unreal. Even the open source games/frameworks I know of that used it like OpenMW abandoned it.
If I was really trying to make a commercial indie game with a FOSS engine, this seems like a good candidate, even considering the questionable Amazon ties... to me, it strikes me as more "open source Cryengine" in the first place anyway, in the same way OpenSolaris indirectly open sourced a lot of older UNIX utilities in addition to Sun's novel code.
(Of course if I was only making a hobby project I'd probably stick to Godot, but I'm imagining the perspective of a small team seriously trying to make a commercial game)