Right, the fact that ideally, the game itself would handle managing information would be the primary appeal over something like AI Dungeon or ChatGPT.

With that said though, AI Dungeon, Hidden Door, etc. primarily seem to be 'choose your own adventure' type deals where you can hash out the details to get the story flowing in a direction you want. It's probably easy enough to make a system that starts with broad story arcs (e.g. Act 1, Hero leaves X hometown, Act 2, Hero explores Y cave, etc.) and then hash out the details inside those specific chapters (e.g. Act 1.1 Hero says goodbye to Mom, Act 1.2 Hero travels through Windy Meadows and meets the Sage, Act 1.3 Hero and Sage find Y cave).

Even with that in mind however, I think at the moment, the scope would still be fairly limited if you're trying to do anything beyond a CYOA type of game. With just a generic fantasy RPG for example, unless you program in a large variety of assets, I could easily see a lot of games have a similar template like 'John the warrior left town, then met Jane the sage in the Dark Forest, then went to the Evil Castle and defeated the Demon King. The end' and it could easily get stale.