As an intermediate step I can imagine a future VR headset that coupled to an AI accelerator that can output 8K per eye in real time based on the context of an entire novel, TV series, or collected extended universe works of fiction.
That's an incredible vision... and not too far away.
I expect the pace of AI research to be vaguely similar. In three decades, we'll have interactive generative VR for sure. In the meantime, we'll hit a lot of fun milestones too. I suspect the first games that are real-time AI generated are not that far off. It's surprisingly easy to train AIs when there's simulation available as the ground truth, especially when that simulation can be modified to output per-pixel embeddings, not just noisy RGB sensor measurements like with video input training data.