I think he would say they are narratively poor by his defintion that the narrative must be generated by the game/player combo and not just pre-programmed. People love "The Last of Us" for it's narrative but that narritive is something that can arguably be conveyed via book or movie. Crawford wanted something where the narrative itself was generated.
And no, he wouldn't count the choices players make in the average game. Whether to get go west or east. Whether to get the a sword first or the arrow. He wanted the story and character dialog to change. Few if any games do that. Of course today with LLMs it's likely some games will soon / have already done it to some degree and will do better in the future.
Going back to his older work, you'd need to feed a context to the LLM about each characters motivations and then update that context based on player actions so that as the game progresses the way each NPC interacts with the player, and other NPCs, changes in a way that's consistent with each character's intrisict motivations and their interactions with others.