Understanding that deep handcrafted content is better than shallow procedural generation
I don't know that you can say this, and what's more I don't know that you could call this procedural generation shallow. A lot of thought and care goes into procedural generation algorithms, and arguably the most successful game in the history of video games is all about procedurally generated worlds (minecraft.)
Would you say that procedural generation makes for a compelling story-driven RPG? It can be fun for exploration, but if it’s empty, it serves little purpose otherwise. On the other hand, handcrafted material can be designed around evoking a specific experience for the player.
Some games are best propelled by procedural generation, but I don’t think Larian games are those games.
Well, let's separate "Larian games" from "compelling story-driven RPGs" in general.
For a compelling story-driven RPG....I think whether PCG is a good fit depends on the story you're telling. Maybe this is a story that involves extended periods of braving a complete unknown, in which case PCG could work very well.
I think there are a few ways in which PCG currently falls a bit short. First, in environmental storytelling - it is common to a lot of open-world games to have little self-contained narratives that you can infer from the environment. Little touches within an environment that make them feel like they were lived in at one point.
The other big one is the social systems on top of the environment. I have never seen a successfully procudrally-generated social interaction.
I think PCG wouldn't work for Larian games because a huge part of Larian games is multifaceted interaction with NPCs, which PCG just doesn't do. However, that is not a necessary component of a all RPGs, even compelling story-driven ones.
