SNW is a show starring and centred around characters that were popular in Discovery. Picard season 3 was popular because it brought back the entire TNG cast which is not what a follow up show would be focused on therefore it can't be used as a metric to determine if it's a safe investment to greenlight.
Is anyone craving more nepo babies, boring Bajoran man or crybaby Haliian woman? Are enough demanding it that it would make enough money for Paramount (or whatever they're called post-merger)?
As a business decision, Matalas' ideas are probably not the smartest given each episode would have to rely on the crutch of a (possibly expensive) cameo in order to compete with its predecessor.