I'm sorry, what's a thing? Unreal engine 5 does those things with machine learning? Imagine someone shows me Claude generating a full React app, and I say "well you see, React apps have always been a thing". The thing we're talking about is AI, nothing else. There is no other thing is the whole point of the AI hype.
What they meant is that 3D scanning real places, and translating them into 3D worlds with collision already exists, and provides much, much better results than the AI videos here. Additionally, it does not need what is likely hours of random footage wandering in the space, just a few minutes of scans.