Personally I prefer D/N cycles with schedules for npc
Well, isn't this a bit of a "No shit" moment?
Apart from it isn't really is it.
I think you could reign it in a little Tuco, especially given most people in the big threads are actually on the sampe page with what we want.
That said, the D/N discussion in CRPG's as a whole is not tied just to BG3 (though on these forums it obviously is) and there are arguments for not having one that transcend budget (for example people hate schedules, and want 24/7 vendors, quest givers, etc...). But yeah,irrelevant to what you or I WANT in BG3.
The fact is Larian only don't want it for reasons of Multiplayer (at least that's the only semi - official line I know of).
I could add that if you have dynamic time and weather, you can end up with quirks in your encounters. Why is that Encounter always there irrespective of D/N or weather?
If however you control that by determining the area to a time and perhaps even weather (if you want to go that far), then you set a scene and control it (like a film per say). Dialogue, interactions, events can all be set to fit that scene and the environment.
So IF you just plonk in D/N as an effect, it becomes an argument of shall I say, generic immersiveness vs Scripted immersiveness at the opposite end (which is how I believe Larian want to do it later on when they have "night" areas - in fact we have seen this with the party scene).