With a day/night circle in place, and the aforementioned possibility, you will have absolutely moronic scenarios where several days pass while one player is stuck in combat.
Not really much of an issue. In Metal Gear Solid V, a full day is 72 minutes. In Witcher 3, it's 90 minutes. It'd take a long battle to last longer than a day.
I really think the only obstacle is that it's difficult to make a living environment, which was essentially Larian's goal with the day/night cycle. People going to bed, etc.
