Jay Barnson has a long and thoughtful post on procedural content in games. I had a post on this a while back, where I pointed out that the rising cost of content creation (the cost of making gamespace was on a near-exponential growth curve for a while in the 90’s) is making it so that procedural content in one form or another is probably inevitable.
Also, 79Soul has a great post on Videogames and morality. I want to point back to a related post, where I talked about adding some moral flexibility to the GTA formula, and how that would improve the game. Both posts express similar themes, which is a desire on the part of the player to interact with a game without having moral choices imposed on them. Emergent consequences are fine (and even desirable) but railroad morality is often frustrating even if the player agrees with the imposed choices.
Note that in the hypothetical game I outline in that post, the player’s moral choices is one of the input values for a procedurally-generated city.