While I think the parent post leaves a lot of open ended questions, I think they are spot on about the tightness of design in games.
In many open world RPGs, or something like GTA, you cannot open every door in a city. In street fighter you can't take a break to talk to your opponent. In art games like Journey you cannot deviate from the path.
Games are a limited form of entertainment due to technical and resource restrictions, and they always will be. Even something as open ended and basic as minecraft has to have limits to the design, you wouldn't want the player to be able to collect every blade of grass off of a block just because you could add that. You have to find the balance between engaging elements and world building.
Having a LLM backed farmer in an RPG that could go into detail on how their crops didn't grow as well last season because it didn't rain as much seems good on paper for world building. But it is just going to devalue the human curated content around it as the player has to find what does and does not advance their goals in the limited time they have to play. And if you have some reward for talking to random NPCs players will just spam the next button until it's over to optimize their fun. All games have to hold back from adding more so that the important parts stand out.