The game "Caves of Qud"'s creators have given some GDC talks on procedurally generated histories [1] which I thought was pretty interesting. But it all seems very limited and hacked since NLP research is still very far from creating any useful text generation like good summaries let alone fiction.
If I vaguely remember, there's this sense of major plot points, and then everything else is connective tissue. You can imagine the same thing in a city design – what are the parts of a city that make it distinctive, or fun, or notable? You randomly choose some distinctive design elements, and then fill in.
This generator has a bit of that. I like how the rivers or an ocean can dramatically redefine a city in this generator. But there could certainly be more. Interesting topology. Highways, instead of a couple equally-sized roads. A scattering of distinctive building forms, like a military base, convent, marketplace.