Obviously this tool is not going to generate a "ship"pable game for you. AI is a long way off from that. As for "design", I don't find it very hard to see how incredibly useful being able to rapidly prototype a game would be, even if it requires massive GPU usage. And papers like these are only stepping stones to getting there.
Right now it looks like Oasis is only trained on Minecraft. Imagine if it was trained in thousands of hours of other games as well, of different genres and styles.
Ostensibly, a game designer can then just "prompt" a new game concept they want to experiment with, and Oasis can dream it into a playable game.
For example, "an isometric top-down shooter, with Maniac mechanics, and Valheim graphics and worldcrafting, set in an ancient Nordic country"
And then the game studio will start building the actual game based on some final iteration of the concept prompt. A similar workflow already to concept art being "seeded" through Midjourney/SD/flux today.
