It's not really a world no. It generates only a small square by the looks of it. And a world built out of squares will be annoying.
Still, it's a first effort. I do think AI can really help with world creation, which I think is one of the biggest barriers to the metaverse. When you see how much time and money it costs to create a small island world called GTA..
Last time I checked, the metaverse was all about people collaborating in the making of a shared world, and we already have this. Examples include minecraft and vrchat, both of which are very popular metaverses. I don't see how not having bot content generation is a barrier?
Then, let's say people are allowed to participate in a metaverse in which they have the ability to generate content with prompts. Does this mean they're only able to build things the model allows or supports? That seems very limiting for a metaverse.
I guess that doesn't matter in games where the world ultimately doesn't matter, it will be better procedural generation, but personally I adore games where the developers actually put effort into designing a world that is interesting to explore, where things are deliberately placed for story or gameplay mechanics reasons.
But I suppose AI could in theory reach the point where it understand the story/theme and gameplay of a game while designing a world.
But when anyone can generate a huge open world, who really cares, is the same as it is now, gotta make something that sticks out from the crowd, something notable.