>Generating good video game assets from pictures is solved
lol no, not at all. It still needs tons of manual work to get it up to quality in terms of topology, material, etc.
In terms of practical engineering it's not solved, I mean that that SOTA in photogrammetry is good enough to create high quality textures and meshes directly from pictures.
Those meshes and textures are far from usable for realtime rendering in a 3D game.