It would be fascinating if NPCs had more backstory to them and more complex behaviors. Although I would imagine it would be near impossible to test since anything could influence their behavior.
I'm definitely interested in exploring this sort of thing. How much can we do with creating interesting characters and interesting circumstances?
Makes me think of the way that characters are set up in AI Alibis -- each with their own secrets, but also with clues about other NPC's secrets. That feels like clever design, and it's the first use-case of using LLMs for NPC dialogue that feels interesting to me: https://news.ycombinator.com/item?id=40921990
