What image generation techniques could you suggest for a DApp game that utilizes erc721? I know that CrypoKitties have an unique DNA sequence and different pieces of the sequence corresponds to the different pieces of an image. Are there any other possibilities? Specifically I am interested in generation of a basketball player image.

There's numerous ways to do this. Using a generative neural network that's somehow seeded with a genetic sequence stored as an ERC721 would be very cool.

The naive way Cryptokitties uses is pretty boring IMO. But obviously you could also just encode properties like Basketball player height, face shape, skin color, etc.

yep, I do not like their way also, I have some knowledge on neural networks, so that may be an interesting approach, but there are plenty of uncertainties of how to approach this possibility. probably train a neural network that receives a random sequence of numbers (player's DNA) and responds with an image, but how to train this network and make sure that it produces correct results. Also, I am not sure how realistic should the images be, like cryptokitties or more like a real photo.