Your right of course, that there is a limit to how far you can take procedural description on the current generation, and also, but to a lesser extent (probably) on the next. But don’t you think that the balance will shift gradually towards procedural only? It is after all the way the real world was/is made (unless your religious
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No, I don't think so. Complex forms and patterns contain very little randomness, and you'll eventually reach a point where the procedural approach takes too much programming time and too many cycles to execute. I've already mentioned layering procedurals as a common practice in offline rendering - but you have the time to wait for a frame there.
There are most likely ways to build a nose procedurally, or generate the bump/displacement textures for the little wrinkles on and old face - but just the research to find these methods would take horrible amounts of time, not to mention how many instructions and parameters such a program would need. You will end up better if you hire an artist to paint and model, and spend the bandwith and memory on storing the models and textures.
Pixar is one of the current leaders in proceduralism, as Renderman is quite good for this approach. Instead of taking a bunch of predefined procedural textures and objects, you can pretty much build up everything by coding a shader. Still they have texture painters and use thousands of bitmaps in their movies - and most of the other companies are way behind them or simply have a different approach.
I'd say that the first applications of procedurals should be water and smoke, with plants following very close. Outcast2 was said to have many procedural maps and geometry to build the gameworld, but I'm not sure that we're gonna see that game ever. Detail maps are also generally some sort of fractals, and their grayscale nature should reduce the performance requirements. Most of the man-made objects and structures should stick to bitmaps for a long time though.
The next gen. will most likely have enough power to fill every pixel on the screen with at least three polygons every frame. With LODing and early z-checking wouldn’t that be sufficient to do all the splines and straight surfaces you could ever want?
Personally, I'd rather call all kinds of HOS (from NURBS to Subdivs) a from of geometry compression instead of procedural modeling. With them, you do not put any additional detail into the model, you only use a more compact format to describe a surface.
You can of course use a procedural map to displace a higher order surface, water and many kinds of natural phenomena are good examples. But for example terrain needs more than a quadratic plane and a noise map - to have any kind of control, you need to have a bitmap texture to displace it. You can then go on and layer a procedural on top of it to generate additional detail, but anything you really need to control should be modelled and painted...