I can't stress how fantastic it is being free from the chains of handcrafted levels. You can really iterate and refine the core mechanics all the way up to end of production. It's liberating!
For some genres interesting levels are a must though. My own current project is looking at how to generate platformer levels that are both interesting and possible to beat. I've got a pretty powerful algorithm up and running, with a pre-trailer up at http://www.pwnee.com
I was already kicking around the idea of using genetic algorithms for play-balancing strategy games (scoring the difficulty based on how many generations it takes to find a winning strategy).
It looks to me like you've taken the concept to a whole new level, though. Good job!
I'd love to play around with some genetic algorithms in a game design setting. It sounds like people have been having some success using it in StarCraft, and I think I could definitely find some use for it in my level generator. I might just have to explore that route for the sequel!
Turns out I'm a lazy programmer when it doesn't involve pretty moving graphics. I suppose the old blog deserves some code love too though. Should be fixed up now, thanks!
For some genres interesting levels are a must though. My own current project is looking at how to generate platformer levels that are both interesting and possible to beat. I've got a pretty powerful algorithm up and running, with a pre-trailer up at http://www.pwnee.com