That said, this tech will in no way give you anything remotely finished. It will at best be the beginning of a prototype which will require a lot of work to even have a proof of concept.

This is the same as with GenAI for images and video. Simply prompting doesn't get you much. You have to know how to use the tool to achieve a creative vision, and you need the vision to begin with. This idea that everyone will have a vision is vastly overestimated. Most people just want to consume and get entertained... and this is just like with anything else, most people don't want to grow their own food, or build their own house.

If so much as a toenail gets made with an AI engine a pretty large swath of the gaming community surrounding it throws a toddler stompy fit on reddit.

Even if the game was "good," just the idea that AI made it would have a pretty negative cloud around it.

This stigma may eventually wear off, but it doesn't appear to be in the immediate future.