This really only applies to the most AAA of western AAA*. It shouldn't apply to Kingdom Hearts which is still the exact same type of game as it was on PS2, just with fancier graphics/movement. Even if you think of another "big name Japanese game" like Death Stranding, it entered full development in 2017 and came out in 2019. That's not its entire development time, but ~3 years total is still much faster than I think most people would assume.
It's curious how many people seem to have internalized half a decade as "about right". I often talk about the inflated budgets (both money and time) of games on modern consoles/with modern "standards", but I think the fact that we live in a post-Covid era also changes peoples' memories of what "normal" is. We've lived the last three years on a planet in which everything takes even longer than it did before, which could already be a long time for the aforementioned reasons. But that's not how it has to be forever.
I'd also like to point out the number of JP game directors (particularly contemporaries with Nomura, from the PS2 era) who have spoken repeatedly (pre-Covid too) about trying to find ways to make games faster, to train young staff faster, because that is how the medium evolved in the past. Usually it doesn't work. But they remember that it once did work, and in their memories of that world, they could expect to create more than two games in an entire decade.
*The most AAA of western AAA is also where you find the worst stories about crunch, so if you're thinking "a longer development time = better for the employees", that's sadly not what the data reflects. The problem seems to lie in the overly-high-budget project itself. It's also probably bad for employee morale to be doing grunt work on one project forever.