D/N is so essential and would improve the game even if it was binary.
Right. That's what I meant. They could literally do the most basic, binary system (i.e. dusk/dawn mini-video pops up, like in BG1, no dynamic light change required, a new darker/lighter version of the map is loaded, most NPC disappear/appear in their bed at night, stores are closed) and no matter how bare-boned, it would still add immensely to the believability of the game world. Not to mention it would open a lot of opportunities for quest design, rest system, fatigue, exhaustion, etc.
It's fairly jarring that a feature that was considered basic in most CRPGs since Ultima and co. is now dismissed as "too expensive and unnecessary" in a game with an overall budget that probably dwarfs the almost totality of the classics (and several current competitors) combined.
I think Larians current way of thinking especially for BG3 is do it perfectly or dont do it at all, and doing day/night cycle perfectly includes a lot of work considering the number of NPC and Permutations they have in the game. Maybe now with all the money from EA they will consider adding this feature.
I didnt notice if it was mentioned already but DOS had a kickstarter strech goal that said: " NPC Schedules, Day/Night Cycles and weather Systems have an impact on NPC and monsters, the weather and moons change and influence the different schools of magic" - doing all this for BG3 would take a lot of work but it would add so much to the game immersion and tactical approach to battels.