> I could totally see generative AI add a ton more variety to crowds, random ambient sentences by NPCs (that are often notoriously just a rotation of a handful of canned lines that get repetitive soon), terrain etc., while still being guided by a human-created high level narrative.

Yes, sure, but that's not what I was responding to. AI adding detail, not infinite quest lines, is possibly a good use case.

> Worst case, you get a soulless, poorly written game with very eloquent but ultimately uninteresting characters. Some games are already that today – minus the realistic dialogue.

Some games, yes... why do we want more of those? Anyway, that's not the worst case. Worst case is incomprehensible dialogue.