one (quite convincing) theory is that anything that can be achieved by a carbon-based neural network (eg. human brain) can also be achieved by a silicon-based neural network. The hardware may change, but the hardware's software expressiveness shouldnt be affected, unless there is a fundamental chemistry constraint.

Since human brains during dreams (lucid or otherwise) can generate coherent scenes, and transform individual elements in a scene, diffusion based models running on cpu/gpus should eventually be able to do the same.