Rogue-like games use the most simple randomisation to generate the next room, and I burnt hundreds of hours in Mines of Moria before I forced myself to quit.
Now with an LLM I could have AD&D-like campaigns, photorealistic renders of my character and the NPCs. I could give it the text of an AD&D campaign as a DM and have it generate walking and talking NOCs.
The art of those great fantasy artists is definitely being stolen in generated images, and application of VLMs should require payment into some sort of art funding pool. But modern artists could well profit by being the intermediary between user and VLM, crafting prompts, both visual and textual, to give a consistent look and feel to a game.
The essay author is smoking crack.
Artists want to create. They do not want to tweak prompts and click "Generate" repeatedly until the output matches their vision. I would find this maddening.
But this wouldn't make sense anyway. Game companies won't foot the bill for real-time renders of your character, let alone a world of generated NPCs. If/when costs are low enough, and players accept a recurring subscription to play games, then this could happen, sure. No way in hell will artists be available in real-time to keep the generated imagery consistent.