So, if you want the NPCs to be able to take over a town hall after the mayor has went off the rails (or some equally unexpected event that makes all the possible planning worthwhile), you'll still need a system that keeps track of it all: Who the mayor is, that there is a mayor, there is a town hall, that you can perform a coup in this specific world, the specific ways in which the NPCs can participate in the coup, etc. If you generate all of this completely procedurally, you'll end up with the NPCs falling out of sync with each other when you have a bunch of them going about their days.
After you've created a sensible database for keeping track of the current world state, character states, character relations, possible character actions, character needs, etc, doesn't that end up adding to something that would work almost equally as well without the LLM? Although LLMs are extremely powerful tool for free text input into that system on the player's end, even if you're just getting the embeddings of that text and hooking that up to a cosine similarity search of pregenerated NPC responses.