i think the other problem with using "AI" like midjourney or large language models for art is they are tweaked by executives with too much power to produce bland marketable garbage optimized for an algorithm that already is promoting bland marketable garbage. (the first problem is obviously the stolen content and energy usage but i am not addressing that here). old school procgen, if you do it right, combines things in a way that sparks human imagination; "AI" wants to replace human imagination.
take what is, in my opinion, the best example of procedural generation done without "AI": dwarf fortress. dwarf fortress creates huge sprawling skeletons of stories and leaves it up to the players to pick out the interesting bits, fill in the details and turn into anecdotes. but you're constantly bombarded with procgen story bits when you play, and you only remember the fun bits. you're a part of turning the gameplay into fun anecdotes about what your dwarves are carving on the walls and stuff.
and, i dunno, some of the reason that chatgpt and shit like that doesn't bloom the way dwarf fortress does is capitalism. and it's the silicon valley culture that flourishes under capitalism. but it's also not doing what you can do well with a bunch of humans making tools with rngs that they hand off to other humans to make stories with. it's trying to do something else entirely. and i just am not very interested in most of those products. because they are not built by people with an insane, beautiful artistic vision like dwarf fortress. they are reaching for an approximation of something impossible that they can pass off as real to rube investors. they all are replicating the bullshit education they got at stanford for being briefcase business boys, not trying to recapture the magic of rolling a natural 20 in dnd in a tense situation. and i just don't care what briefcase business boys have to say about anything, they do not imagine cathedrals, only plastic bags