Pretty much everyone is disappointed that the NPC schedules, day/night, and weather cycles aren't in.

2. Morrowind had a cosmetic only day/night cycle. They didn't have schedules. I'm pretty sire they also had a hell of a lot bigger budget than 1M Euro. Should this game have cosmetic only day/night cycle? I do think so. Larian doesn't, they want all the features to have effects on gameplay.

3. What are you talking about? This has nothing to do with day/night cycles. You CAN kill NPC's and your progress is NOT blocked (you may need to do more work, granted). Larian has repeatedly said you can kill all NPC's and still finish the main quest. I have no idea what you are trying to say here or how it relates to D:OS.