"Literary plutonium?" Yes, that's a good metaphor.
I could have used that quote from Other People's Money that says "Lawyers are like nukes. I have 'em, the other guy has 'em, and when you use 'en, they fuck up everything!" But yes, like that.
I think writing is really the only side of game design where this simple fact is so easy to miss. If you're doing programming or graphics and you try something ambitious, it's pretty evident very early on that you're going to fail. Sure, slip-ups like those do occasionally surface: See Heroes of Might and Magic 4 (butt ugly) or Steel Battalion: Heavy Armour (it just doesn't work). It happens, but it's not frequent because the "cost" in most fields is actually quite evident.
Not so with writing. If you can think it, you can usually write it, no matter how bad of an idea that might be. And since most of your colleagues will be too busy doing other things and you WILL NOT face an editor, there really is no apparent cost to using these "literary nukes." That, to me, is where skill and experience can really save a writer's ass. It can alert him to the fact that that big gun he was given won't just kill the enemy, it will blow him up, too, and alert him to this fact BEFORE he uses. A skilled and talented writer is a godsend to a game developer... Or should be, at least. But the sad fact is that such people aren't valued very highly.
If I had to point to one SEVERE problem with modern-day gaming, it's that it's still treated like gaming was in the 80s and 90s, which is to say we only value game mechanics. Certain games may SAY they're about the story and the characters, but for the most part that just means graphics and gameplay. Rare exceptions exist, like Mass Effect right up until the writers shot WAAAY past their own skill level, but these are rare and they are exceptions. As such, the people who are most suited to telling these stories don't receive the recognition they deserve, and you end up with an industry without any real market for professional writers. You can apply as an artist or a programmer or any of a zillion project management jobs, but how many people can apply for the job of a "writer" without needing to also do a bunch of other things, as well? The sad truth is you don't have "writers," you have people who are specialists in other fields who also moonlight as writers when they don't have other things to do. Hell, how many people can find a job at a game company as an EDITOR? How funny would that be to go and apply for?
So really, how CAN writers have any experience? How, when the gaming industry doesn't respect them? You'll see this a lot with "expert developers," and I've even seen this problem with Extra Credits. It's this belief that you can't start with a story, that because games are an interactive media, you have to focus on game mechanics and tell mood through them. To my eyes at least, there's wanton disregard for having a solid fictional world with compelling characters and interesting stories made for a game to draw on. So OF COURSE you have these writers trying their best and often failing - because they pretty much have to.
Even City of Heroes, much as I like its lore, ended up falling into the same trap. Once the game ran out of Rick Dakan's original content after Jack Emmert replaced him, the game started struggling. Still, Jack ran it like a GM, and he tried to keep story on the surface. Once Jack Emmert left, though, Matt Miller just lost it completely and tossed it over to whoever was willing to write to do with as he pleases. That's why Doc Aeon got so far in over his head - because I don't think anyone at the company really appreciated his skills AS A WRITER and nobody sat him down to critique his work. We did, but by the end, I'm pretty sure he saw the players as his enemies, based on his comments.
Until games recognise writing as a skill as important as artwork or code, then we're going to keep handing amateur writers the keys to the nuclear subs, handing them a pair of scissors and letting them run around unsupervised. And that's a problem.