True, but couldn't the same be said about the real world to some degree? Everything "new" is based on something existing, right? Even in sci-fi/fantasy movies which are completely wild, completely "out there", the things in them are conjured by us, which is in some way shape or form based on our imagination, which is based in the reality we exist within.
My point is, that feedback loop you speak of already exists, it's just that... there are SO much variation, content, possibilities... but the same thing could be true for AI generated content in some sense. Feed it all our assets (sounds, music, movies, images) and then let it go bananas... :) - you'll have as much variation in the digital world as we do in our real world.
I agree about lack of a "higher goal" in most games, same old basic recipes. I always think of a MMO-type game where you have really well made AI that can attack cities, little villages and things like that. This should happen in a none-scripted way, and that players then have to help each other out and combat these invasion type of things. This would give more purpose than "get to the next level" sort of scenario.
Games before used to "feel" mysterious. I am looking at you Ultima, Everquest and perhaps Anarchy online. Initially there was no guides or answers, you had to really explore and this made the world(s) feel mysterious. Anything could happen. Nowadays the entire game is datamined, guides are written and everything is known even before released, very sad. Perhaps "streaming" games could solve this issue, where no assets are present on no client, just a real time stream ala stadia. But, I suppose latency, graphics quality, etc makes this hard.
Don't just live for the future. Life happens now, not at retirement. In my experience talking to people who has retired, many are bored and are struggling with purpose. Sure, there are certainly many exceptions. I just mean, don't forget to live right now, this is it, it happens now.
My point is, that feedback loop you speak of already exists, it's just that... there are SO much variation, content, possibilities... but the same thing could be true for AI generated content in some sense. Feed it all our assets (sounds, music, movies, images) and then let it go bananas... :) - you'll have as much variation in the digital world as we do in our real world.