It isn't if they can do better, it's if they can do cheaper.

They'll get better when better drives ad revenue.

A bunch of generative filler text won't games more immersive. Maybe there is some scope in giving the model hidden details you need to coax out of it LA Noire style but currently everything seems a bit gimmicky.

Most games, especially so called Triple A games, have too much text and NPC dialog. The last thing we need is more of this crap that the developers don't even care about enough to write. How about we focus on making the gameplay good and not how we can fire more developers?