I know it's a ton of work to do it all the way (getting a town's behavior set up for just day is a lot of work, as I know from my mod), but a day night cycle with a fairly minimal influence on NPCs could be workable. It wouldn't have to affect any NPCs that are involved in quests, just the likes of some basic merchants and few citizens, and then a few characters might come out at night. Personally, I would find that satisfying; not asking for literally every single NPC to go to bed and have new dialogs for night, or what have you. 95% of events could work whether its day or night, but just having like, 5% of the characters and skills influenced by the cycle would do a lot to improve immersion.
But is Larian interested in doing this minimal approach? Probably not. I think they figure if they're going to do it, they're going to make it impact the game as much as the origins are, which is obviously a crap ton of work. So I understand why the day/night cycle won't happen, at least, not till D:OS 3 :P
