I agree. I also imagine super casual players won't care that it can't really provide much more freedom than a typical CRPG. But that would work pretty well for most WotC campaign adventures anyway.Given the choice between "DM the game yourself" versus "have an AI run the game" I imagine many people would pick the latter, if the DM shortage thread is any indication.
That said, a real bonkers AI GM that pulls from every weird trope and rpghorrorstories thread and D&D meme would be GLORIOUS.