Emily Short's blog is a good resource for that field in general:
Or re tooling specifically:
It’s interesting to see what random generation comes up with.
I think it'd be interesting to apply modern generative text models to stats and random table based simulation. Normally, the text is generated by grammars that describe world state, but they can be both hard to write and repetitive for the reader/player. Generating flavor text from world state instead of writing it might be an interesting avenue to explore.
On similar track (but unrelated to original post) is the Jason Roher's Sleep is Death game (http://sleepisdeath.net/). It's asymmetrical turn-based adventure game. One person is a player and can do literally anything. The other person is a game master who has to come up with appropriate responses to player's actions. There's in-game editors for graphics, text bubbles, even the music.
I'm also toying with something like what you're describing in second paragraph. The procedurally generated world with tables of stats modelling the state, all rendered through styled text. All objects have defined list of actions that can be performed on them (open, smash, drink...), mapped to proper state responses. I'm hoping if these actions/responses are easy enough to input by non-developers, a complex world with rich interactivity could be built by collective effort. It's still in early stages so I don't have anything yet to show unfortunately.
It's a sort of a turn-based storytelling game. One player plays the story and the other controls the world and the NPCs. It's pretty indepth and well though out, despite the low-fi look.
I made some excellent use of https://sectorswithoutnumber.com/ for a Star wars campaign recently. tempted to check out the system it was intended for.
Other than that, it looks quite skookum. I may use this for my own campaigns. Thanks for sharing!