Where is the line between realism and uselessly cumbersome?

Having played many survival crafting games (the forest, ark, 7dtd, valheim, etc.), the main components that make them unique are the crafting, resource management (items, hunger, thirst, temp), and game progression style. I wanted to ask all of you where the line is between realism that enhances the experience or extends gameplay to make it rewarding, and unnecessary extra steps because your sim of a character hasn’t gone potty yet.

Of course the style of each game and the thematic resources heavily influence the mechanics, but in a general sense, what works and what doesn’t work?

One specific example is resource gathering and mobile inventory size / weight capacity.