Well, one of the problems is that it would actually be too easy to make a first person game in AGI. Flat screens of unmoving components is really much easier than having interactive objects and stuff.
Plus, I used to play Deja Vu II alot, and I never could beat it, but I enjoyed it immensely. I think I'm going to snag both Deja Vu's off of
www.the-underdogs.org tonight (free plug).
But you're wrong about full screen animation. If you're willing to sacrifice four or five picture resources, you can animate every pixel in the screen. To see a really crude example of this in action, go to
http://userweb.springnet1.com/failrate and download the newest version of Voodoo Girl: Queen of the Darned (hey, a free plug for ME this time). There is a scene with a waterfall that... um... sort of flows. I'm having weird artifacts show up. I'm pretty sure the code is kosher, but sometimes it works just fine, and sometimes it blows. However, I'm going to experiment with overlay.pic to see if I can get it to work. That way, I could sacrifice a group of pictures to get multiple rooms with some good generic animated backgrounds. I'll put an example of it into Voodoo Girl if I can get it to work.
I'm a shameless exhibitionist, but I love this stuff.