I also agree about the night shift being inappropriate. It's an artifact of high capital costs and cheap lighting.
You're kidding, right? Dwarves live underground. Lighting costs the same at all times. And space is (somewhat) at a premium underground.
erm... I mean the night shift in the real world is because capital (The big machines we use) is very expensive, and the best way to get your value is to have it running all the time, even if it means paying a high premium getting your workers to show up at 2am. In a world with low capital costs (workshops are cheap), it doesn't make sense to pay your workers a premium to live off cycle with the rest of the world.
Lighting is the same way. We went from lamp oil and candles being extremely expensive, to a sixty watt bulb costing pennies a day. Free natural light is no longer a huge plus.
So far as dwarves go, you are correct, there is no reason for them to care about solar cycles other than making them easier for us to understand, and culturally fitting in with the world they associate with. (plus, not all dwarves live underground)
Faster to play, pilsu, not shorter in-game. Talking about play time, not game time.
Wait what? You're not making a lot of sense. Who cares how long a year takes to play? A year is an arbitrary measurement of time for the dwarves. Sowelu had it right in his desire for 'a certain rate of player decisions' being the core factor for the player's expectations. The problem isn't years, it's how long a dwarf takes to walk somewhere versus anything else he does. Making a dwarf walk twice as fast doesn't have to make it realistic, it just makes walking take up less of a dwarf's waking hours. If I wanted to micromanage walking distances, I'd play Settlers.
I think 30-60 minutes per season is a good target, but that's just me. Of course it depends on how fast your machine runs.
Yeah, real time to game time is kinda fuzzy at the best of times. 60 minutes would allow for both a caravan and a raid...