As I read the post and viewed the video the only thought I had was "Great! Add another 10 years on to Star Citizen's release date as they integrate this into their game engine..."
I mean yeah, it's cool and all, but any sort of RPG needs a good writer to breath life into the game's characters. Used right this has the potential to enhance good writing. Used to cut corners by lazy developers with overbearing publishers breathing down their necks and it could make every RPG lifeless, dull, and mediocre.