They have! There's a Stable-Diffusion-enhanced version of Zork[1] out there, and there are also extensions[2] for Oobabooga which facilitate dynamic adventures. Also, this point-and-click adventure game[3] is pretty fun if you can get it to run.
Doesn't work, SD's comprehension is too weak to make complex scenes.
Now DALLE-3 is good enough, problem is if it'll be cheap enough. 100% there are revolutionary new forms of adventure games being developed based on it.
Tangentially related: a friend made a Discord bot that automatically generates D&D items, NPCs, monsters, etc. with images and full descriptions. It uses neural.love and Poe for images and text generation, respectively.
