MUDs are a low-tech version of what I'm describing. It relies on other people being available and generally leverages the usual tropes with repetitive killing-based gameplay.
LLMs are limited today, but one day they may be able to provide the well-paced narrative you're talking about. The LLM would be a skilled fiction writer that would introduce interesting events as I explore the world.
If I decide to go to a bar and talk to random strangers, it could give me interesting life stories to listen without any action. But, suddenly, a mysterious man walks in, gives me a sealed envelope and departs without saying a word... What is in the envelope?