Ever since Skyrim was advertised with the early promise of "If you break this lumber mill it would change the local economy"...which obviously never happened, I've loved the idea of dynamic systems in games.
For a truly dynamic system you'd need to build in more than a dev team can manually build - so you need AI for these systems. And where you have dynamic systems, sometimes you'll need dynamic assets.
However, the human touch on art is still far better than AI (at the moment, who knows what the future holds). So I think something like how character creators work is the best solution; handmade art but with morph targets etc and where sliders would be, it's an AI creating dynamic NPCs.
Aha! Even ChatGPT couldn't find this: https://youtu.be/O0zPYpEGpVI?t=324 "we have a working economy you can sabotage this wood mill if you want" LIES TODD, LIES!