I've been playing around with this stuff for around a year too, mixing deterministic-ish simulation with AI comms, decision making and story guidance. There are flashes of cool, but the work to guide it to write good stories with what you have often takes just as much effort as writing the story. Fine, you've written a situation generator. Now you have to tell it what kind of situations are compelling, without them feeling like cookie-cutter templates. Then what you're doing is writing.

Thanks for the Emergent Garden rec, looks interesting.