Procedural generation cannot replace proper level and encounter design in any genre, let alone RPGs.
The idea that procedural generation allows for "infinite content" like some developers put it is a lie. Procedural generation does not create new content - it merely rearranges existing content in various ways, while being entirely constrained by the rules put upon it. A human level designer with at least an average amount of talent can easily create interesting scenarios that involve some outside-the-box thinking and custom scripting to make them unique. A proc gen algorithm cannot do that: it works entirely inside the box. It has no creativity, it just blindly follows the rules.
In a hand-made game, ideally every encounter and every location has some thought put into it. The designer consciously made the decision to put five goblin archers there, and three melee goblins, and one goblin shaman, and to put the archers behind cover, to create a challenging and fun encounter. In a procedurally generated game, encounters don't have any thought put into them - it's just a random selection of stuff deemed appropriate by the algorithm. You could end up with a piss-easy encounter of just two goblin melee fighters, or a way too hard one with three shamans throwing spells at you every turn.
But the procedural generation is never fully random. The developer designs a generic template which the algorithm then uses to create endless variations of that template. I do play roguelikes occasionally, but they're only coffee break games for me, I usually spend less than half an hour on one session then quit, while in proper hand-made games I can play for four hours straight. What I noticed about pretty much every roguelike I played is that the content gets very, very samey upon replays: the first dungeon level is ALWAYS populated by rats and kobolds. The third dungeon level has a chance to have the boss Broxflox the Necromancer, but he doesn't always spawn, just sometimes. Roguelikes have repeating patterns, they're not completely random, so after half a dozen games you've seen all the content the game has to offer. But none of the encounters are even half as good as in a hand-made game because they're just randomly jumbled together based on a generic template. And even if you end up with a really good dungeon design by chance, you will never encounter that particular level ever again - on your next playthrough, the rooms and encounters wil be arranged differently again, so that cool encounter you had in your current playthrough was a once in a lifetime affair. Meanwhile in a game with hand-made content, you can re-play your favorite encounter over and over again. The really hard Twisted Rune encounter in BG2. The encounter with Lareth the Beautiful in ToEE. No such thing in a proc gen game.
If a procedural algorithm were fully random, it would give you bullshit like a high level lich in the first dungeon level, while the final boss is a rat with two hitpoints, and you find the best weapon in the game on a mid-level orc you kill in a wilderness encounter. Also there'd be a complete mess of grassland, desert, and snow right next to each other, and a dungeon spawning right next to a village. Lots of stuff that makes no sense either from a worldbuilding or a gameplay design perspective. That's why the algorithm is fed with templates that makes sense: an undead-themed dungeon for level range 1-5. An orc-themed dungeon for level range 5-8. A pyramid with Egyptian-themed enemies for level range 8-12, located in the desert biome. And thanks to these rules, games with procedural generation soon become predictable. You KNOW there is a pyramid for high level characters in the desert biome... except sometimes it doesn't spawn so you're not even sure if you can look forward to that location. The starter dungeon with skeletons is always going to look similar: a bunch of hallways populated by weak skeletons and zombies. There are no real surprises. Everything is predictable, and therefore repetitive. And because proc gen algorithms can't think outside the box, you will never encounter anything non-predictable.
Procedural generation also works only for the simplest of level design templates. Usually 2D top-down dungeons with no verticality. Some of these newfangled survival games have proc gen for fully 3D worlds, but even then their architecture is way less complex than in hand-made games of the same genre. There are no algorithms that can create levels as good as the top-rated fan-made maps for Thief, Quake, Doom, Tomb Raider etc... all of which are games that heavily rely on good architecture and a fluid gameplay flow mixing some platforming/exploration with actiony combat encounters.
Fan-made levels are a good point here: they also provide almost infinite content as long as the fanbase is large and healthy enough, as proven by the Doom, Quake, Thief and Tomb Raider communities: all of these games are over 20 years old yet they still receive new fan-made maps every year, and the level designers become better at their craft every year, too. And even mediocre works by new authors are better than anything a procedural algorithm could provide. That's because hand-made levels created by a real person have a soul, a personality, a unique style. A great example are the Thief fan missions by Christine Schneider, who has made over 30 (!) levels since the early 2000s, with her latest released last year. Her early work is very rough and amateurish and not really worth playing, but I still enjoyed going through her entire catalogue because even in her crappy early work you can already see traces of what would later become her signature style, and with every release, her levels became better and better. It's fascinating to look at. You can witness a level designer's development from early work to mature work. Also by this point I have become so familiar with the Thief level design community, I can identify a popular author's style even if I don't know he made the mission.
Can a procedural algorithm give you level and encounter design with such a degree of personality? No, it can't. It will always just toss generic variations of a generic template at you. Lame and boring.
It doesn't even add as much replayability as the proponents of procedural generation always claim: due to the genericness and simplicity of proc gen levels, they become repetitive very quickly, and new playthroughs will feel the same even though the levels are (slightly) different from before.
Meanwhile I can replay some excellent hand-made games seven times without getting bored, just because of the high quality of the encounters. I derive more enjoyment from replaying an encounter I like - such as the Lareth encounter in ToEE's moathouse - with different party compositions than from replaying a roguelike where every dungeon level is of the same mediocre quality.
In fact, hand-made content deliberately designed to allow for different approaches is infinitely superior to anything a procedural algorithm could ever spit out.
