Those are Roguelites [Angry man vs cloud noises], yes people use them, but in limited matters and it isn't some magical fixing thing that can do grand things. The bosses, events etc etc are all still setpieces. There was this time where people expected it to be able to do more, a magical time of hope and wonder, before Radiant Quests. (Several games actually did this btw, warning forever, all the games from Sodak Entertainment. It just has a small lacking thing, even if the games are cool, and anybody interested in this should have played WF and some of the Sodak games), or look at Crawl Stone Soup, how they use random dungeon generation combined with 'vaults' setpieces of terrain which can have special (and even unique, careful around those statues of Hellephants) effects added to them.

But there was a certain type of hype around the method. So much that it even had a wiki created specially for the method. Basically im more talking about the hype around it before people had figured out the limitations and effort involved. A bit like XML, the hype around that was also quite something. Obv XML has its uses, it just wasn't the magical thing people said it would be.