It works fine in Diablo II. Of course, Diablo II is all about running through the level and killing stuff. It's harder to have randomized puzzles.
I'd consider it an improvement to have more randomization, so long as it's in the right amount and in the right places.
Some rooms in dungeons that have random types/amounts of enemies? Could be an improvement.
A smaller mini-dungeon (or cave, etc.) with random rooms, where your only goal is to get to the end to get some item? That would be fine.
A Zelda game where everything is random and it lacks cleverly designed puzzles? Not good.