Why would they release the game without one of the most important features? Why would they not have implemented it a year later? From what you're saying it seems like it may never come. All the more reason for them to stop their current attempts at manually faking it and start implementing at least one part of the background sim, dynamic events.
The Background Simulation exists, and it has from early Alpha (so I'm told), and I believe it has all the complexities built into how it operates. We got our first hint of Tier 2 NPCs with missions given by "station commander" or "station medical officer". Technically, every mission on the bulletin board is issued by a Tier 2 NPC representing the minor faction it's branded with. These are unimportant distinctions until the character creator comes online and procedurally generates faces for those NPCs.
As for the "dynamic community goals," well, frankly, I don't know what you think Power Play weekly tasks are if they're not community goals which are "dynamically generated by player participation." The system uses the same mechanics as Community Goals, but with less variety and limited rewards.
The only support for my theory that this is what FDev thought they were is the fact that authored CGs nearly disappeared in the months after 1.3 was released. When player demand called for them to return, they did.
The background simulation does exist and it is as complex as they've always wanted, but what we see of it and how we can currently interact with it is not as complex as it should be, because those game mechanics simply do not exist yet.
Now, there are massive flaws and balance issues with minor factions and CMDR interaction, but for the most part, the BGS does work.
When Horizon's released, there is clear evidence that the population of the galaxy increased or was redistributed. The BGS ideally generates these changes and applies them dynamically over the course of the year, but that mechanic has not been implemented into the game yet. There is no means for a CMDR to affect population of a system, so the dynamic representation of population in the BGS has not been made available. It is still there, under the hood.
Why did they release a game without full access to the myriad of features they eventually want the CMDRs to have access to? Because the first two years of development of this game was made off the backs of Frontier Developments and a crowd-sourced $2 million dollars. They had the COBRA engine, but Stellar Forge and the BGS had to be built over the past three years, and frankly, they had absolutely no idea the game would be successful enough to fund a season 2 or 3. According to FDev, there is comet data in the galaxy simulation now, but they've not figured out the best way to render it, so we don't get to see comets, yet. They didn't spend the resources to implement these features into the game, while they still built the structure for their future implementation into both the Stellar Forge and Background Simulation.
FDev's implementation of Elite: Dangerous has one key concept - design priorities. Gutayama vessels still don't have the CMDR's Chair from the concept art! is it sad? Yes. Is it important enough to push forward? No. Personally, I want them to spend the next 4 months on fixing the background simulation. Others want them to fix Power Play. Others want passenger missions, or multi-crew, or the Commander generator.
As far as we know, right now they are actively working on:
- volcanic planets without atmosphere
- multi-crew
- fighter ship deployment
- background simulation fixes
- power play rebalancing and updating
- various new SRVs
- new ships
- an avatar/face generator
And that's only what they have explicitly told us they are currently working on.
Personally, I don't think we will get BGS generated dynamic events until we get Tier 2 NPCs. Right now, there is no personality to the procedurally generated content. A simple thing as adding a face should help that. Passenger missions will aide that even more. Those are all things they have said will come during Season 2. The addition of those things should also include a re-balancing/focusing of Power Play. It's had a year of testing, so they should know how to implement what they want out of it now.
They've never announced new developments to the background sim. Hell, they barely include them clearly on the patch notes.
So will we get dynamically generated missions with more varied storylines and personality?
I don't see how they can introduce all the mechanics those things will require to work without sliding them in by the end of the year.
Is it possible that they will never come?
Sure. Of course it is.