The hand-drawn map you see is just a thematic overview (though at one point we were working with that artist to see if we could make hexes from her style). We spent an... excessive ... amount of time scrapping the existing (pre-made) map system from the KS to make the new hex-based system. We made it to be very lightweight and easy to mod, there's an old video of the early Map Editor on our youtube which gives you an idea or you can wait a bit to see the in-game footage which is more representative of where we are at now.
We still do heavily feature the pre-made scenarios, which are now built with our Map Editor. I feel strongly that a custom designed scenario is essential to experiencing a game like this, but with the addition of the dynamic map you can now sink continents, flood rivers, knock down mountains - this is what brought Moloch and Inatha back into the game as their abilities require the ability to manipulate the world itself.
As for Procedural it certainly exists, but it's the one stretch goal you won't see in the upcoming beta. While it's easy to just have the code plop in some cities and nations it's really a meaningless jumble right now, we'll need to invest a certain amount of time to ensure that the world creation is somewhat sensible. To support that we created a POC back in the KS that has a Genealogical process, instead of answering questions like in scenario selection you play out "a turn a generation" and get to shape the flow of cultures and nations as they develop over the Ages. It's very, very, very simple but it's still a nice way to customize your world - I think there's some screenshots somewhere of the prototype either on a KS update or on the forums somewhere.
