Procedural generation has nothing to do with multiplayer. There are games that have competitive multiplayer and procedural generation, e.g., Heroes of Might and Magic III: Horn of the Abyss. Interestingly, this game offers both human-created and procedurally-generated maps, but players compete nearly exclusively on procedurally-generated maps.
That is, Dwarf Fortress is the one true video game.
Multiplayer games on the other hand are like a game dev cheat code — you really don’t need to do much at all to produce a “fun” multiplayer game, because the player-interaction will bring all of the complexity and emergence facilities you need. All you need for multiplayer to work really is to not stop players from doing interesting things with the system, apparently a herculean difficulty for most companies.
The ideal game is somewhere in the middle where the designer focuses on mechanics which combine to produce more than their sum, and then anchor it in handcrafted content meant to show the best angle of the mechanical emergence.
One way to split the hair would be to say the mechanics are procedural (I would rather reach for the programming metaphor of composition, however) while the environments are hand crafted.
Nintendo is the king of this, but I also mentioned multiplayer games because they intentionally focus the designer on the mechanics and the levels while leaving the challenge generation to the players (and a whole conversation about how best to matchmake them.)
In a more shallow simulation, procgen falls on its face, and mostly wastes time as it fails to note any interesting aspects of the sim (or repeats itself, or only points it out once every so often). Hardcoded levels wins out here: its more concise.
That is, as simulation complexity increases, the amount of procgen can be increased. The scaling between megaman (weak sim, all hardcoded) to roguelikes (decent sim, mixture of hardcoded/procgen) to DF (sim porn, procgen porn).
Of course, you can also have a complex sim with hardcoded levels, but this is unsatisfying as it leaves a lot on the table -- you don't play a grand strategy for the campaign mode.
Nintendo games are intentionally fairly weak sims (few general behaviors, usually explored throughout the full game), and thus hardcoded levels works well -- there's little of the simspace remaining to explore when you finish a title -- so procgen would just be a noisy, verbose explanation by comparison
It's very much not a binary choice between procedural vs handcrafted. Procedural content creation is truly great at some stuff, while the same is true for handcrafted creations. The real trick is to blend handcrafted and procedurally generated in such a way that both tools get maximal utilization in the domain they excel in.
There was an era of gaming where it was reasonable to think your game could become a hobby for tens of thousands of players, with all the requisite fame that comes from creating it. Spelunky opened the door here, and a lot of high profile indies like Vlambeer and Spryfox led the surge.
What I think actually happened is that so many games started coming out, that there's more content than any one player can consume. The hand generated stuff floats to the top and a new class of indies now sits the throne. Anyone distracted by procedural gen lost their spot.
For another parallel where players choose hand generated content over procedural, look to the prevalence of multiplayer where humans generate challenge for each other on the fly - versus AI baddies that can be cheesed by easily shared internet guides.