i think it can work for procedurally generated situations, and the llm is acting more like a translator between data model and player rather than being a data storage layer.
thats close to tweaking existing dialog, but with a bit more freedom.
you still dont have to give the player arbitrary response
You absolutely cannot let the player get any whiff of AI slop so the integration needs to be extremely delicate. Watching a film and noticing a person has 6 fingers in a scene would instantly kill any engagement someone would have with it. For it to remain as art it must always be fundamentally about human-human communication, I want to have a conversation with the game developers through the game, not with a LLM. If developer intent ever becomes muddled the game has failed.