As I posted in my other comment here - imagine that with fully dynamic AI and settlements like Dwarf Fortress Adventurer Mode, and spells that interact with the environment and physics like Magicka and like the concept for Underworld Ascendant.

I think that's the sort of thing they want to head towards with the dynamic quests and stuff.

Unfortunately the near-requirement to voice dialogue (and even generating the dialogue!) nowadays makes it harder to scale even with the systems in place. Hopefully the improvements in AI generation can help here.