I think you're making a lot of good points for the current SOTA.
That being said, it took us a few hundred years all in all just to work out paint, so if people keep working with this tech eventually a game designer could, in theory, lay out the skeleton of a game and tell an AI to do the rest, give it pointers and occasional original art to work into the system, and ship a completed playable game in days.
Whether it will be worth playing those games is an entirely different enchilada to microwave.
That being said, it took us a few hundred years all in all just to work out paint, so if people keep working with this tech eventually a game designer could, in theory, lay out the skeleton of a game and tell an AI to do the rest, give it pointers and occasional original art to work into the system, and ship a completed playable game in days.
Whether it will be worth playing those games is an entirely different enchilada to microwave.