Additionally, video seems like a pretty forward output shape to me - 2D image with a time component. If we were talking 3D assets and animations I wouldn't even know where to start with modeling that as input data for training. That seems really hard to model as a fixed input size problem to me.
If there was comparable 3D data available for training, I'd guess that we'd see different issues with different approaches.
A couple of examples that I could think of quickly: Using these to build games, might be easier if we could interact with the underlying "assets". Getting photorealistic results with intricate detail (e.g. hair, vegetation) might be easier with video based solutions.
There’s absolutely no reason that a game needs to be generated frame-by-frame like this. It seems like a deeply unserious approach to making games.
(My feeling is that it must be easier to train this way.)
3D model rendering would be useful however for interfacing with robots.
In VR, for example, the same 3D scene will be rendered twice, once for each eye, from two viewpoints 10-15cm apart.
If you don’t have an internal 3D representation of the world, the AI would need to generate exactly the same scene from a very slightly different perspective for each eye, without any discrepancies or artefacts.
And that’s not even discussing physics, collisions or any form of consistent world logic that happens off-screen. Or multiplayer!