Then comes the mechanics. Should day night cycles rotate every 10 minutes? 20 minutes? an hour? If it is too frequent then you are constantly resting, if it is too far between, people will be irritated that it takes too long. I really think a good implementation is to compromise and allow users to cycle the time by choice and adventure at night or in the day based on camp decisions.
Some quests can happen at night, it would be easier to act as a thief or assassin at night, add a new aspect of strategy with npc patterns of life. Less people moving around but more roaming guards, permit ambushes for certain encounters, etc.
