Definitely - imagine this kind of stuff with EA's "fuck you" money behind it? It's this impressive to look at already and it's only really a proof of concept done by academic institutions or relatively small companies. Maybe bigger studios are doing their own research and implementations of the tech, but we're yet to really see much of it in games.
Rockstar is the only studio I can think of who use some variation of this concept in their games with the Euphoria physics/animation in GTA, RDR, Max Payne 3 etc. Even then, that animation system was at it's most pronounced in GTA IV and then they started to favour canned animations again in later games. For example they replaced the physics based drunken stumbling in 4 with a canned animation in 5. There were less moments where pedestrians would grab onto or lean on something to stabilise themselves when falling over etc. My guess is that due to hardware limits they prioritised some other stuff like having more vehicles or people on screen at a time, or some visual effects etc and the tactile/physics-based gameplay was sacrificed. Maybe next-gen could allow for both?
The possibilities are endless for sports games, you could use motion capture from the actual players to train the AI to turn it into a proper physically simulated technique in the game which interacts with the ball the same way as real life. Your inputs could send your intention to the AI character who would then try to produce that outcome based on the techniques they have been trained and literal physical ability. For the first few years it may look and feel janky but I would totally forgive (and support) this for a while to see such a revolutionary change in football games long term. I believe this kind of design would also work for other sports games like tennis or boxing although they wouldn't get as much investment as football.
Like you say though, it's just a dream really - I know it will probably never happen as the current formula is such a safe and profitable operation every year, there's no real reason for such a big shake up but it really is possible with current and upcoming technology to produce something so much better than what we have now. At the very least I hope to see it within my lifetime

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They surely must be aware of the concepts, whether they find it cost-effective to pursue is another matter.
Now that FIFA is such a huge phenomenon which has almost monopolised football gaming in many major markets, maybe something as drastic and different as this could be a way to tempt people back?
Here's another video about the kind of tech but about football, it's not as impressive as the basketball one but shows similar physics based motion/gameplay potential;
For me, the frame at 4:00 for the shooting direction is great - how the foot impacts the ball determining where the ball goes...
Anyway I'll stop going on about this stuff as it's not exactly on-topic and is probably never going to come to fruition, maybe there could be another thread about these idealistic imaginary football games

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