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I’m really excited to see how AI can be used to create new kinds of games with deeper, custom content. Using AI to make the games of yesterday seems like a huge waste and probably not where the industry is going to go with it.
games with good stories are nice, paying $10k+ for a virtual pile of garbage (real story about the cost to make a 3d asset for a AAA game) seems insane

I hope this can enable more people to tell their story w/o destroying the industry at the same time

People can tell their story for themselves with these tools, but making a story or a game that's compelling for other people is an entirely different skill, and one you don't get from AI. Like other UGC tools (Roblox, for example) you'll wind up with a few games that are interesting to other people and millions played only by their maker.