They seem to now be under the mistaken impression that radiant AI is to get more content out of the game by implementing infinite permutations of simple quests, and that customers will think X things permuted Y ways is X*Y content and not just X+Y content. But the purpose of radiant AI was, I think, to make the world feel alive and even unique. Which means I really shouldn't even see every x in X or every y in Y.
If you want an interesting implementation of the same concepts as in Radiant AI I recommend checking out Dwarf Fortress. Every dwarf fortress world is essentially an entire history of thousands of radiant AI interactions up until you enter it, at which point your adventurer/fort becomes part of the world and continues the radiant interactions with its civilizations/wildlife/monsters/etc.
I think DF is probably the ideal existing game to considering adding LLM-characters and conversation to as a drop-in augmentation. DF already has the simulation and generation of realistic characters and stories working, but unfortunately it's very formulaic to interact with it as an adventurer. In that case the game actually is quite "alive" already, just without a voice.