The more I read and think about it, the more I become convinced that figuring out short and long rests is going to be the hardest aspect of this game for Larian, and that once they settle on a solution a bunch of other things will fall into place.
The issue with rests is that the game is very much balanced around them. Long rests dictate how frequently numerous casters like wizards and clerics can use their spells, while short rests dictate how often other classes like warlocks can use their abilities. So you can't just remove rests without fundamentally altering the system to the point where it barely if at all resembles 5e. At the same time, rests are the mechanic that most relies on a living, human DM to make them work right. A DM knows how many encounters they want the party to run into in a session, they knows how difficult they want the party to find things, and they can adjudicate when it does and doesn't make sense to take rests. But a computer program can't do that, especially not with the way encounters are handled in this game.