Is the creation of many unique and realistic looking human models often the bottleneck in game development? Personally, I'd think rules of play, quality of story, and the immersiveness and variety of settings available in the world make a game. Give me that and it can be text-based or have characters that all look like Pacman for all I care.
However the adaptability of character creators is still a hard problem.
Like, I’m not particularly concerned with character aesthetics but I still found myself reject every single god damned hair style for my male OC in Baldurs Gate 3.
Programmers aren't necessarily good at art, and artists aren't necessarily good at programming. Good art is expensive, or difficult, so if you could get it generated (and iterated on) at a very low cost it might make it easier to make a game in your office in your spare time without having to learn a very different, very difficult discipline without much overlap.
To me, it seems people who predicts huge impacts/"democratization" from genAI are at best not in the market for existing content, or in some other times hates it. That projects onto predictions.
