Regarding games: > A third reason could be that generated content is just not a good fit for gaming.

This is my current opinion as a game developer. IMO this isn't going to be fun for most once the novelty wears off. Games are goal oriented at the end of the day and the great games are masterfully curated multi-disciplinary experiences. I'd argue throwing a game wrapper around an LLM is a new LLM experience, not a new game experience.