When I hear procedural I think of game maps which make the map as you play, thus not being handcrafted but rather something made following rules given by the developers. Think Minecraft, the 'world' has a seed which determines how things are made. Is that the kind of "procedural content" you are talking about?
Simulations makes me think of imitating real life, or just aiming for great realism or being very in depth. Putting it together with procedural, I take you are thinking of stuff which is not hard scripted, but rather made by the computer so as to be considerably more open to great influence by the reader/player while being extremely in depth?
According to my very rudimentary understanding of computers generating stories, it is not a technology that has been anywhere close to perfected. Computers may be able to find patterns, and with self learning stuff even create things that make some sense, but generally you won't be having a quality story without a person going over it to give it the necessary polish. As I understand, a major issue lies in language not being 100% concrete, meaning changes over time, and people change the way they speak. Combine this with stories being pretty long and thus difficult to keep everything fitting together nicely as a complete picture, and it makes it pretty hard for computers to generate stories.
I don't recall hearing stuff regarding computer generated stories for a while, so the technology has probably gotten considerably better since I last heard about it, but as I understood, making it perfectly capable of quality story telling was something that was at the time viewed as boarder line impossible, due to storytelling being considerably complex for the type of stuff computers are good at.
Now throw in readers influencing the story through choices/actions and I really do not see how you will have something beyond a bare bones tech demo created in this day and age. Again, I am not an expert, and I'm far from informed, so feel free to correct my misunderstandings.
I certainly think it'd be really cool, but if you are talking about what I think you are, I really don't see it happening to a capacity that works on the scale and with the scope I feel you are hinting at. Again, I could be wrong, I am being at least somewhat cynical as well, so feel free to correct me.
Granted, another way I might look at what you are referring to is more so to do with players influencing the story more with less, as you mentioned, scripted events. So say you are talking to someone, rather than it being some cut-scene, you are in control and can shoot the person. Something like this is certainly possible according to my understanding, as that is more on the side of gaming and player input influencing stuff as opposed to a computer writing.
Anyway, you do appear passionate, which means you almost certainly have a better idea of all this than I do, so I'd love to hear some more about it (if you are willing), or at the very least, for you to expand on what you mean a bit more, as I am making an unhealthy amount of assumptions in this here post.
TL;DR
I think this isn't really relevant to this thread, seeing as the thread is about a company of a more traditional branching narrative game looking for writers, but I might be misunderstanding what you mean, so feel free to elaborate, as it does sound interesting.