Eh, my bad for being snarky, too, Gaelic. Sorry. :D
But...Hm. I dunno. I guess I just don't understand the big roleplay potential for having totally simulated worlds. Those are really good at simulating the ordinary, but not the extraordinary...and the extraordinary is what RPGs are all about, isn't it? I mean, each really unique thing would need enough hardcoding that you almost might as well go all the way.
Plus, real life is boring. And it would be a little worrying if you tried to simulate everyone in the world, not just because it would be a computational challenge. Think about it this way. Just how many bandit camps *ARE* there in the world? Not all that many. And how much respect do you think an adventurer would get if he really went around killing criminals? Not all that much (He was just a pickpocket! You didn't have to stab him to death then cut his head off then loot his body!). The economy in a lot of places would be totally uninteresting. And don't get me started on the timescales involved, either.
If you wanted to do a serious RPG with major world events and mass slaughter and good action sequences, all within a reasonable in-game timeline, you kind of have to set it in some HUGE SCARY thing like, oh, Lord of the Rings. (I recommend War in Middle Earth, btw! Good game!) That gives you chance to do some really heroic stuff and make a real difference in the world. But...townsfolk kind of don't matter anymore, and it would start to become a short game, plus your own personal role can only be so large...
Okay, yeah. I think I've isolated my main beefs with realistic RPGs. 1) Why is there an endless onslaught of bad guys to kill, and why is killing them somehow okay? 2) If townsfolk are meaningful enough in the plot that you would ever want to talk to them, then what makes you so important in the grand scheme of things? Why don't you just, like, raise an army and make them do the fighting, and relax into a life of diplomacy? In short, if you need to worry so much about the common man, what makes you a hero?
...It sounds like a lot of the things you guys are suggesting are gimmicks. Having awesome AI is not gameplay, and it doesn't even necessarily make the game more interesting...it just makes it more complicated. Your tabletop Dungeon Master knows that each person has something like a daily routine, but he also knows that the players shouldn't need to fuss with that routine except for flavor and for plot-importance. If you make a big deal about it, the players will too, and there's only so much time around the table, right? In a tabletop RPG, the high priest may not be around the temple when the players drag the bleeding near-corpse of their friend in, but surely someone can run and get him. If you don't abstract out the daily routines of people in a computer RPG, then you end up with some NPC standing dumbly at the door saying "The high priest is not in, he will return in the morning", or maybe if you click through a series of dialogue options and long drop-down menus, he could say "Currently he is at home and brushing his teeth. Let me mark his house on your map." What a great experience. Sure you could hardcode some understanding of urgency for these important NPCs...but then you're getting into hardcoding things again. Where do you draw the line?
"It's still early morning, the tavern is closed." "Okay, I guess we come back in an hour then." If you're not going to throw something interesting at the players in the meantime, if it's not relevant to the plot and doesn't add anything to the storytelling experience...then why waste time with it? A tabletop GM can at least get the hang of when it's okay to fudge things for the sake of speeding up the game and getting back to the action. Abstraction is IMPORTANT in games, especially when you are just a computer and can't tell when the players are getting bored!