It seems to have started as the former but evolved into the latter. NMS evolving into something greater over time hasn't hurt either, especially while Elite seems to devolve rather than evolve at the same time.
Ideally my ultimate dream game would be to have Elite's ship flight mechanics integrated into the NMS gameplay loop and game mechanics. A mix of Elite's realism with the NMS focus on fun engaging gameplay, creativity, proc gen, and exploration.
Far too often FDev seems to forget about who is playing their game when developing new features. On the other hand Hello Games has keenly been listening and paying attention, and it shows.
Having reinstalled Elite after a year, in VR, it is simply amazing. Bought a Mamba, and the whole design, cockpit is of extraordinary quality*. While NMS certainly came a long way, it just doesn't come close in these things... if it will be ver sub €20. I will buy it though.
*While I have pretty much no expectations with Elite's 'new era", to me the Mamba proves that significant effort is still being made - it just remains mostly hidden.
At the end my only hope that Elite will retain the good bits and VR with the new era, whatever it is. No expectations, just let me jump in my ships and have a spin time-to-time.