So not only will we not have any meaningful local hardware in the future, but games themselves will simply be custom-generated to satisfy the player’s exact desires? Sounds like it would become pretty dull. Art and experiences are interesting because they are unexpected. Experiencing someone else’s unique and surprising artistic voice is what I love most about good games / art experiences.
One way to look at it is that only humans can have a unique and surprising artistic voice, and leave it at that. However, some games can have _extremely_ interesting emerging content, e.g. as seen in Dwarf Fortress and RimWorld. Since much of the content is procedurally generated, at the moment we are left with text descriptions of things. I can easily see a future where the game worlds are automatically fleshed using these types of techniques, and it would be for the better.
Also, on a purely economic scale, automating some aspects of art asset creation for games would be a complete game changer. It would probably up the art capabilities of indie game developers quite a bit, although it's hard to predict these types of things (in the sense that it might benefit AAA developers even more - who knows).
