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No offense but I think you underestimate the predictive potential of millions of hours of game state

None taken. But your claim is that creativity is not possible anymore, since it was all done in the "millions of hours of game state". However, if creativity is possible, then my argument is correct.

Another issue is that machine learning/AI don't predict rare events, like earth quakes. So even with all the knowledge in the world, it won't predict a rare creative move of a player.

But every event, creative or otherwise, is made up of hundreds of smaller events. That complicated wall jump - 360 kill you just did used several input signals. Even if the server side AI can't predict the exact final outcome, it can definitely help with the intermediate, well known states for at least some of the input systems.

I say some but I do believe a large enough volume of data can improve the performance of this class of input/states.

Yes, and then you predict something, broadcast it to your clients, and it ends up being wrong so the clients have to roll back. Would not be a good experience.

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