Give me a few examples of games that feature time passing (a cycle of day and night, etc) that have it happen at the same rate as IRL. Pokemon's the only one I'm coming up with. Skyrim, for example, has a clear day and night cycle, along with things that only happen at certain tims of day, but that cycle is a lot faster than IRL. It's a well-established game design feature, and doesn't have any of the problems with time compression you mentioned.