The compelling part of a RPG is the process of discovery - discovering the world, the story, monsters, powers, etc. If the content is hand-crafted, there's always something new around the corner, which keeps the game fresh.
The problem with autogenerated content is that the process of discovery changes to discovering the algorithms used to generate the content. Once the player has discovered those algorithms, it's impossible to continue having a fresh experience. So "autogenerated" is, at best, taking hand-crafted content, repeating it a few times, and changing some details in the hope that the player won't notice the repetition right away.
This is, of course, only in the context of traditional RPGs - more sandbox-style games, like Dwarf Fortress, or Love (or, hell, at the other extreme of auto-generated content, Tetris) can do just fine.
Nethack seems to succeed with generating interesting automated content. It is even fun to just read the "elevation stories", each of them is different.
One of the problems with auto-generated content is that the setting is typically extremely static. If you could build a properly robust dynamic environment, the auto-generated content would depend hugely on how players actually interact with the (dynamic) gameworld.
I'm sure some would figure out the algorithms involved in such a game, but if you add enough fuzzy logic in, it could potentially keep the wool over most of the players' eyes..
The problem with autogenerated content is that the process of discovery changes to discovering the algorithms used to generate the content. Once the player has discovered those algorithms, it's impossible to continue having a fresh experience. So "autogenerated" is, at best, taking hand-crafted content, repeating it a few times, and changing some details in the hope that the player won't notice the repetition right away.
This is, of course, only in the context of traditional RPGs - more sandbox-style games, like Dwarf Fortress, or Love (or, hell, at the other extreme of auto-generated content, Tetris) can do just fine.