It has long been used. Procedural textures and vector graphics in one form or another exists in many modern games. There has long been compact and quite a full-fledged 3D game weighing several megabytes. AFAIK, 7-10 years ago I saw a demo of the game engine that used it all and and even fractal graphics used and as a result he perfectly digested the different sizes of the scenes and to easily and seamlessly moved between them. Each approach has its pros and cons. Bitmap graphics require lots of RAM and enough weak CPU, vector graphics require very little memory and more powerful processor. In the end, it all comes down to ratio of time the "loading image from disk into memory and render on the screen" vs "to calculate the color at a specific point according to a formula or set of formulas and the rendering on the screen."