That's not what "world-model" means: see https://en.wiktionary.org/wiki/world_model. Your [2] is equivocating in an attempt to misrepresent the state-of-the-art. Genie 3 is technically impressive, don't get me wrong, but it's strictly inferior to procedural generation techniques from the 20th century, physics simulation techniques from the 20th century, and PlayStation 2-era graphics engines. (Have you seen the character models in the 2001 PS2 port of Half-Life? That's good enough.)