First of all, I don't think the idea that "knowing a prime requires knowing its decimal expansion" accords well with mathematical practice. Unless I'm mistaken, the largest known primes are all Mersenne primes, and (for good reason!) are almost always written in the form p=2k-1, not by their decimal expansions. Granted, the currently-known Mersennes are small enough that one could calculate their decimal expansions in Maple or Mathematica, if for some reason one wanted to. But even if that weren't the case (say, if k had 10,000 digits), I'd still be perfectly happy to describe p=2k-1 as a "known prime," provided someone knew both k and a proof that p was prime.
On the other hand, similar to what you suggested with your "NextPrime" function, what about
p := the 1010^10000th prime number ?
Certainly p exists, and one can even write a program to output it. But is p therefore "known"? Saying so seems to stretch the meaning of the word "known" beyond recognition.
Trying to arrive at some principled criterion that separates the two examples above, here's the best that I came up with:
An n-digit prime number p is "known" if there's a known algorithm to output the digits of p that runs in poly(n) time (together with a proof that the algorithm does indeed output a prime number and halt in poly(n) steps).
(Strictly speaking, the above definition covers "knowability""known-ness" for infinite families of primes, rather than individual primes -- since once you fix p, you can always output it in O(1) time. But this is a standard caveat.)
As far as I can see, the above definition correctly captures the intuition that a prime p is "known" if we know a closed-form formula for p (which can be evaluated in polynomial time), but not if we merely know a non-constructive definition of p (for which it takes exponential time to determine which p we're talking about).
A very interesting test case for my definition is
p := the first prime larger than 1010^10000.
According to my definition, the above prime is currently "unknown", but will become "known" if someone proves the conjecture that the spacing between two consecutive n-digit primes never exceeds q(n) for some fixed polynomial q.
If you accept my definition, then a "function that always generates primes" almost certainly would trivialize largest-prime contests, since presumably it would give a deterministic way to generate n-digit primes in nO(1) time, for n as large as you like (which is not something that we currently have).
Now, maybe there are cases where my definition fails to match up with "intuitive knowability" -- if so, I look forward to seeing counterexamples!