Let me argue this:
We cant have passing time, bcs map is not litteral transcription of the world we are in ... or the more important reason, bcs map is not consistent (to put it simple: 5 steppes inside the Grove =/= 5 teppes between Grove and Blighted Village) ...
Can you even imagine how Day/Night cycle would have to look, in order to support that?
Yes we can have passing time and yes I can easily imagine how it would look.
a.) Simple day/night switch. Click a button and/or take 2 short rests and everything everywhere transitions to night. LR'ing then transitions it to the next morning.
b.) Time just passes throughout the day at some rate. It doesn't matter whether different zones of the map are supposed to (allegedly) represent different physical scales. Just have time pass at a constant rate in all areas, and pause all time when any person enters TB mode
Are you really claiming that so many players will be outraged enough to ruin their game experience AND negatively impact Larian's final sales if, e.g., time doesn't pass at 10 seconds per second in the Grove and 20 seconds per second while traveling between regions?
