So LLMs hallucinate by design which is of course bad for any serious work but then again I was thinking in which situations would hallucinations be actually useful....let's say poetry writing, lyrics writing etc., the crazier the better or for generating business ideas, "crazy ideas succeed" type logic.
"Once upon a time, in a small town, there was a huge town"
Which I thought was the brilliant start for an interesting story. Just that slight deviation from expectation provides a excellent scaffold for your imagination to take hold.
Of course the rest of the generation was utter rubbish, but if you could on-demand deviate from standard at key points while keeping the majority internally consistent then it would be great.