I think the top use will actually be diffusion. A small model could add a lot of variability to palettes to start. Then move on to something like a slider puzzle where an AI is altering the initial terrain configuration in dynamic ways. It would likely create an environment where a player’s natural pacing can be compensated for in real time.

I could also picture a function calling setup that attempts to optimise player experience.

I’ve been looking at ways to generate tiles for CDDA using a small model. There is a ton of potential especially in open source. I won’t run any model unless it is open weights running on my hardware.