Can we not give fault to the engine? I doubt that most of the people here (myself included) actually know what's possible or impossible with it. Saying "the engine can't do it" just absolves Larian of responsibility and fault. Many of the things mentioned here might actually be possible with the engine!
-e.g., Day/night cycles: change the lighting (definitely possible) and possibly NPC cycles (almost assuredly possible) after a certain amount of conversations, time spent exploring, short rests taken, or one of many different criteria. Bam, day/night cycle.
Also, Larian/WotC chose to use this engine to make BG3, so they're still ultimately at fault even for the things the engine can't do. The question then becomes, are the benefits of this engine worth the lost potential features?
Fair enough. Not being able to pause the game during real-time exploration was something very specifically Larian confirmed couldn't be done because their engine won't allow it. So to my mind, many of these other things that have been raised in this forum, all major issues that are reasonable for people to want to see changed/fixed, not being addressed by Larian, and not even being brought up for discussion, COULD be because they are all things that are simply not possible with their engine.