I also had this exact same thought, but after watching GPT-2 be a dungeon master, as long as there's causal and temporal consistency, the AI can generate some s

I also had this exact same thought, but after watching GPT-2 be a dungeon master, as long as there's causal and temporal consistency, the AI can generate some surprising and funny story lines that humans normally can not. Stories don't really have to simulate human beings, just evoke engaging emotions in the reader. Very few fantasy novels actually teach anything meaningful.