Frankly? I think your system is a bit too elaborate.
It could work, but it's absolutely unthinkable to suggest to the same Larian which doesn't even want to implement far more basic solutions.
The point here would ideally be to come up with the most simple, cost-effective and efficient form of implementation to suggest to them (reality check: "only to watch them ignore it anyway").
They won't give as a binary, mostly-cosmetic solution, let alone a multi-phase fragmentation of the daily cycle.
If the point was to come up with with the most fanciful and elaborate form of D/N cycle ever made we could have just wrote "Do what Ultima VII did but way better!!!" with dozens of exclamation marks.
Also, on a side note: I think it's worth to stress that players ALREADY need to agree on rest now. It's important, because it needs to be clear that it's not "a complication" the D/N cycle would introduce.
