Just some examples of things you can do.
How about create a D&D (or any RPG) game, the NPC can be the dungeon master, creating monsters/loot and rendering pics in real time. Add additional NPC characters to join your party and actually take turns, you could play solo adventures. Even play via microphone, if the voice extension gets modified, you could have each character have its own voice via tts.
The extensions are opensource to make anything you want, connect it to web or any service. Have the npc chat avatars trigger on actions.
You can even train models, want to create a NPC based on a book? Feed it book series, tweak the personality, and you can chat with them, or make up new stories. The training model interface is included.
Or for adults you could even create a virtual partner, or any type of NPC/avatar you want. Have them text you stable diffusion pics, chat with you on sms. etc.
AND, the thing is, its out NOW on github with text-generation-webui. I was able to create a D&D dungeon master with stable diffusion in about 10 minutes. I did already have stable diffusion running thou, just enabled the api.
I can't wait to see how this new amazing software can take off to form new ideas, games, technology.