This kind of announcement without an appropriate demo to verify their claims is pretty common with DeepMind at this point. They barely even discuss their limitations, so as always, this should be taken with a grain of salt.
Most of the big labs never go into their models' limitations. OpenAI does it best, despite their inveterate hype-building. Their releases always have a reasonable limitations section, usually with text/image/video examples of failures.
Google does a good job with that too usually. Which makes their last two announcements (IMO success and Genie 3) being a bit light on details is somewhat surprising.
> World models are also a key stepping stone on the path to AGI, since they make it possible to train AI agents in an unlimited curriculum of rich simulation environments.
I don't think Humans are the target market for this model, at least right now.
Sounds like the use case is creating worlds for AI agents to play in.