I'm taking the opposite approach with my somewhat similar project Fantastic Dimensions[1]. I fundamentally don't believe the type of consumer that creates this sort of stuff will want to have AI do the heavy lifting for them. I'm focusing on making the building experience as intuitive and flow-state inducing as possible. These people are chasing the zen-like state of building and the sense of accomplishment that comes with hand-crafting an artistic vision, the end product is almost secondary.
Minecraft or even your inspiration of The Sims would actually be super boring if the experience was just "AI build me a volcano" or "AI make me a cool living room".
I think all good apps should strive to achieve a flow-state, and Rosebud is no exception; we aspire to achieve the same. The AI part is to solve a problem rather be a feature. The kind of users we want to serve, and what they want, is to make games. The chat interface is a way to create a flexible interface to do that, not force AI into the solution. "AI build me ___" is only addressing simple asset generation or addition of game features, which is a very limited use of AI to solve the bigger problem we are focused on, which is to decrease the barriers to entry to making games.
There is also a useful distinction between generative AI features of gameplay versus AI in aiding the creator (game dev) to make games. We do both, but they are driven by different user needs. For instance, for the former, there are AI powered characters which gives players a sense of spontaneity in the gameplay.
Minecraft or even your inspiration of The Sims would actually be super boring if the experience was just "AI build me a volcano" or "AI make me a cool living room".
[1] https://fantasticdimensions.net/