I'm going to expound on that a b... er, a lot... a really lot lot. I agree the "dynamics" just aren't there and include hypotheticals and suggestions. If you don't want to read a lot, read the bold points and see if you want to read the rest.
When companies use "dynamic", and "living, breathing", they're using a specific words, the implications of which are fully known to them, and their marketing department.
Dynamic... living... breathing... These words conjure images of things happening that aren't looped... specifically, they point to a structure that allows NPCs, critters and the like to change their behaviour and routines based on input. It was even said during development [and NEVER walked back AFAIK] that area populations would change and be different based upon overall dynamics, like predator/prey effects.
What we actually have is a majority of spawn locations that are static. Not a huge deal... But the next part makes it problematic.
Death [to NPCs and Monsters] has NO meaningful impact to the world. Understandable from a quest design perspective, but not so dynamic. Enemy dies, at some point, random replacement NPC spawns in unseen and takes up a set of behaviours.
Kill X bandits, random people appear from nowhere and move into the area. An attempt at the dynamics that was hyped. But there is no dynamic process. It just happens or it doesn't.
Completely random spawns are extremely rare. This is a tough one. The spawn rate of rare monsters... well, is probably intended for a design reason. 
That said, tweaks to the above, and this especially, could have a huge impact.
Let's explore a hypothetical. We'll change the respawn rate for villagers to be slower. Now we're going to tweak the behavior so that monsters can spawn and stalk areas like crookback bog more widely. There are ways to protect certain NPCs, ways to not impact questing... etc... but this is just a basic hypothetical. The result could be dynamic, not spawned in just to happen, but dynamic attacks on villages.
Attacks that could have devastating consequences for the inhabitants. Children wandering into the bog because parents are dead, following the trail. Villagers staying indoors, even during the day, because a noonwraith killed poor Old Villager, the redshirt who always sat on the chair greeting folks on the way in.
Another [then I'm done, I swear!] opportunity is the behaviour of thugs in Novigrad/future cities. The behaviour now is strange, completely static... sometimes to the point of the thugs not even moving... and most of the time can be avoided by just walking away. Could basic conditionals be set for the thugs' AI? Could they act as normal NPCs doing their city walks? Imagine a scenario where thugs are NOT immediately named as such. Turn into a back alley and you realize they have other intentions for you! Instead of using set locations for "traps" or "attacks", let the fight unfurl where it is. It would be an entirely different feeling to arriving and traversing Novigrad.
Overall, the game is amazing, and does a lot of things [I think...] better than any game has before. But overall game quality has no bearing on whether specific things promised were delivered. It's important we have a dialogue with developers so we can understand the why of things like this.
CDPR has an amazing track record of continuing to support their titles and even rebuilding them... including dialogue, models, and behaviours. They've also shown us they're still super excited to make more Witcher 3 content. So, CDPR, think about tweaking things and let us know what you think about our opinions and suggestions!
