We are going through something of a golden age of text-based games. There are still plenty of parser-based games being created but choice-based games have been growing in popularity and complexity over the last few years. And yes, people have been experimenting with generative AI.
There are several competitions each year for new text based games and an active community.
Tooting my own horn, if you like retro Star Trek-like things then here is a short somewhat randomized choice-based text game I entered in a competition a few months back.