Okay so the jump from ‘draw a pelican on a bicycle’ to ‘generate a full fantasy world with internal economy’ sounds like pure progress until you remember the model has zero way to audit what it just made. Like building a piece of live audio equipment and having no way to actually hear it. You’d ship broken stuff constantly.
The audio equipment analogy undersells it actually. With audio gear you can at least measure output impedance and frequency response even if no one’s listening. A generated economy doesn’t fail loudly like that, it just quietly doesn’t balance, and nothing in the loop checks for that unless you build a separate verifier. That feels architectural to me, not a training gap. You’d need something evaluating the artifact against its own stated rules, and that’s a different system than the one generating it.