I disagree actually. The 32nd century gives them a broader canvas and more freedom in many respects. There are less constrained by the “rules” of what can and can’t happen and what must fit in with the current established status quo. That may encourage more creative storytelling. Or a guy can but hope.
I've seen that explanation used to explain many attempts by different ongoing series to attract new viewers. The Bad Robot movies ditched the continuity to supposedly bring in new viewers. Marvel's "Ultimate" line was meant to appeal to new comics readers who's been introduced to the characters through the films. Voyager was initially pitched as a purer Trek exchequer for newbies because they were in a new quadrant, disconnected from the weight of Alpha Quadrant continuity. Likewise for Enterprise. Also see DC constantly rebooting their lines to get away from "messy" continuity.
I've always viewed that as a cop-out. A bad writer will see something like "Well, a supernova that will DESTROY THE GALAXY wiped out Romulus before Spock could stop it," and say "Ugh, that was terrible. Why don't we just reboot and pretend it never happened?" Whereas a GOOD writer takes a look at what he has to work with, tweaks it a bit (The Romulan sun went supernova unexpectedly) and creates something new with massive storytelling potential.
A bad writer throws their hands up at the 1997 "Eugenics Wars", a good writer either works around it (Greg Cox's Eugenics Wars novels) or reworks it (Tomorrow and Tomorrow's explanation, which also incorporated the detested Temporal Wars in a positive way).
Continuity isn't a prison. It's a guidepost for how to create and maintain a world with consequences. If we just cast aside all of that every time we find it inconvenient, we'll alienate old viewers and we won't bring in any new ones because we won't have the structure of literally decades of hard work to help bolster it.
Strange New Worlds is a bright, shining example of how continuity does not have to be a handicap, but can instead support a canvas for bold, innovative stories. The reason SNW succeeded is because the writers worked within the established world to create new stories, which also deepened some of the stories that come after it chronologically. The idea that you have to jump ahead 1,000 years to run away from continuity is anathema to the creative spirit anyone writing at that level should have.