This and the idea to tie passing time to short rests seems so far as best suggestions about time.
I think both could be implemented together. In 5e there is exhaustion. Not sure if there's any plan to implement that here eventually, but to the extent it's comparable to the current fatigue mechanic, short rests do not remove levels of exhaustion. Following from that, it's not as if they would be logically incompatible with the system I've proposed(like reducing fatigue and consequently rewinding time would be), and they are only supposed to last an hour anyway. Maybe a short rest could just be as simple as the sun immediately assuming the angle representing the party's current fatigue value, as opposed to continuing the imperceptibly slow interpolation towards it.
