I've experimented with a very similar flow back in the days of GPT3.5. It resulted in really fun story lines, but i found that the player choices benefitted from some steering: For each plot point i generated three choices, where [1] progressed the story, [2] stalled the plot and [3] resulted in a plot twist, just these additions to the choice prompts increased playability by a lot, and prevented plot stagnation and "feedback loops".
nice work! very similar to the scrappy codepen clone i built for myself, will copy a few things! I've integrated AI edits and use it suprisingly often as well to sketch out mini apps. https://endtime-instruments.org/scratch/
one thing i personally admire/appreciate about simonw's work is how beautifully his tools, services and research "stacks" to unlock higher and higher levels of abstraction. so many of the little one-off scraper/notifier/transformer repos on his github showcase the amazing composability of the tooling he built previously.