This Project Genie stuff is really rather impressive – I’m less interested in the gaming aspects (60 seconds? Pah!), but it’s going to be interesting to watch how it’s adopted for cheap stock shots and special effects.
The thing is, though, there are a couple of articles kicking around and no-one seems to have done the next logical thing – create 60 seconds of footage, grab the last frame, and then try and create more footage based on that last frame. It’s likely to degrade across generations, but how it degrades will be interesting in itself.