> the problem is fundamentally the same as things moving out of sight/out of frame and coming back again
Maybe it is, but doing that with the entire scene instead of just a small part of it makes the problem massively harder, as the model needs to grow exponentially to remember more things. It isn't something that we will manage anytime soon, maybe 10-20 years with current architecture and same compute progress.
Then you make that even harder by remembering a whole game level? No, ain't gonna happen in our lifetimes without massive changes to the architecture. They would need to make a different model keep track of level state etc, not just an image to image model.