I don't think I agree with this take.
I love procedural generation, and there is definitely a craft to it. Creating a process that generates a playable level or world is just very interesting to explore as an emergent system. I don't think LLMs will make these system more interesting by default. Of course there are still things to explore in this new space.
It's similar to generative/plotter art compared to a midjourney piece of slop. The craft that goes into creating the code for the plotter is what makes it interesting.