(Dwarf Fortress is the one procedural game I know - besides maybe its more faithful clones - which isn't static. But the procedural generation there is also mostly not incremental, it generates the whole world beforehand and only some of the fill-in details are incrementally generated).
The holy grail has to be a graph-based refinement/embellishment system, where it generates just the nodes, temporally and spatially, which matter for the situation the player is in.