
Valid questions. There are many issues to distinguish in your question.
AI is Theft, Popular models are fed stolen content. I agree. They should be sued for all they they have. Either pay or make them a world heritage, open to all without fees.
Why NPC dialog and not models or asset? Assets and world building are designed one an usually fixed. Which make sense the world is a fixed space with fixed rules. Having AI generated scripts for NPC would fall in the same category and that is not what I would try. What I expect are au powered well crafted personages that live in that world. Rondo that you still need good writers, to create the persona background and goals and quirks to make it interesting to interact with. Your companion can only be sworn to carry your burden so many times. Charisma and factions stats become way more engaging etc. AI is also not limited to LLM and generative, having a faction figuring out that some sneaky bastard is robbing them could trigger them to plant honey pots to try and catch you. Ennemies learning would be cool

Just started No man sky, first play through. I’m still not sure what I think of it. It seems too be a time guzzler. On one hand it must be entertaining because 4 hours past in the blink of an eye. On the other I don’t feel like I’ve done or seen much. Time seem to be the main currency behind most things you do .
Morrowind was definitely the superior elder scrolls. Want to kill the witch? Sure go east and turn left at the scrawny tree. The entrance is behind the boulder that looks like like a generic boulder. Good luck see, you in a month. Want to know what’s at the top of that mushroom tower? Sell half your gear for a levitation potion, fly up and die at the hand of a busy sorcerer whom you bothered in his study. I’m still not fully recovered from the burn after getting that ashlander an egg he suggested I get him. I’m pretty sure that one guard I possess off is still looking for me in Vivec.

The core RTS is very standard like the first command and conquer. The visual were a bit lacking not becaus ugly but hard to differentiate between untis when in the heat of battle. The single player mission is like a large training. And I kept getting destroyed by the AI even on easy.
I might give it a try again to play with my son, now that he is old enough. It’s really the time travel that should be revived by a bigger or more experienced studio. Lots of potential in there.

Achron
A RTS with time travel. You can actually send troops and orders in the past to change the outcome of the battle.
https://youtu.be/b6YYWCW1wVs?si=UfuVQX0j4c8fFIkZ
It’s a shame it never got big. The time travel mechanic is awesome.
Cool video that show the potential. Add different voices and vocabulary levels and it become quite interesting. Maiq would be great liar.