The main issue I see is the spatial component is hard to describe in text. The new vision models make it easier, but still I imagine it's not trivial to integrate all the mechanics plus the spatial component on the limited prompt space.
I do think that 1) combining with the hand crafted AI and 2) having an "LLM advisors" system where for a given aspect (eg military) the "advisor" would present the options and tradeoffs to the "Main AI" and the role of the latter is to weigh the tradeoffs between the options presented by the advisors.
And what I do know is that it could be so much more immersive than the current hard coded AI!