I think those are valid conserns. And I also think it can be handled, for instance by fractal algorithms. Most houses are just subsets of a general style, so I'd be quite interested in seeing some work done on procedurally modelled houses. I think doing it in a believable way completely feasible with todays technology. Hell, I could even take a crack at it myself, with POV-Ray^[1] lol. But given that it's an old ray tracer I don't think it would translate very well to modern game engines. It is entirely script driven, though, which makes things a lot easier when it comes to generating procedural contents.

[1]: http://www.povray.org/