I love cyberpunk as a genre/style/aesthetic but there are almost no open world videogames that actually nail it.
For me the cyberpunk aesthetic basically requires bustling small streets with tons of detail (shops, trash, crowds). That's where most games that try to use an open world fail in my opinion. We just don't have the technology yet to create these dense detail rich scenes without a lot of work on the developers/artists side as well as keeping it performant so it can run on mainstream gaming PCs.
Cyberpunk 2077 is a prime example of that in my opinion. Most parts of the city look like it's Covid again and people must stay at home. Some parts of the map come remotely close but the illusion breaks once you inspect your surroundings.
I like Cloudpunk (https://store.steampowered.com/app/746850/Cloudpunk/) a fair bit but even that suffers from the walkways and buildings feeling slightly empty. At least the pixel art style helps it from falling in the uncanney valley that cyberpunk constantly dips in.
I think Cyberpunk has a good basis but as you say, it's heavy weight; they did increase or tweak crowd density in an update I think, but also it's a PC game so it can be modded and improved as hardware gets better. The challenge - and you already see it on lower crowd density numbers - is getting enough unique and different characters. Cyberpunk seems to have a number (dozens?) of NPC characters making up the crowds, but it gets repetitive and you frequently see identical ones.
Procedurally generated characters would already improve that, and some games do have it but they tend to pick from a fixed set of animation and behaviour stereotypes still. More of those stereotypes make it better (think GTA), but it's still fixed.
I don't think going all in on procedural generation or even AI would fix it though; especially AI has a tendency to go for a mean / average character quickly. And in video games, you still want predictability.
That said, maybe a different visual style (lower fidelity or 2d) would work.