In the first video in the OP it says that it is currently possible to create a game by just inputing a photo. In the future you could get some photos or videos of people and then turn that into an interactive experience and do what you like to them. Already some people are using nudify apps where the AI can generate nude photos of them. That could be turned into interactive experiences too.
Or you could start with a game you like and then combine it with something else just through talking, etc.
The budget of Grand Theft Auto 6 was about 2 billion but I think in the future you could play something like that but customize it. e.g. set it in 1920s Brisbane then add magic, etc.
So it's about instant gratification rather than having to wait months or years for games to be released.
Already I can use LLMs to generate text based interactive stories but in the future you'd be able to interact with those stories in VR with your speech, etc.
BTW this is related to the beginning of a scenario mentioned in the OP:
I wonder, I wonder, what you would do if you had the power to dream at night, any dream you wanted to dream. And you would of course be able to alter your time-sense and slip, say seventy-five years of subjective time into eight hours of sleep. You would, I suppose, start out by []
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Then it talks about why you'd want to experience an ordinary life without knowledge of your godlike capabilities...