It is possible, as XanMag says. I am going to pimp my game, but this shows it in action; the three rooms on the surface are normal Quest room, but everything after that is generated at random on the fly. It even maps each level for you, if you type MAP.
http://textadventures.co.uk/games/view/ ... tcg/deeperCreating rooms and exits is pretty straightforward (use
create and
create exit, or alternatively set up prototypes, and
clone them). The tricky bit is doing it so coherently, so if you go north, then east, then south, then west you are back where you started.