While I can see how that can be something people think is neat, cool, immersive etc. I just feel that dynamic nighttime in virtually any game gets annoying really fast. In recent games I've played like Fallout:NV and The Witcher, whenever it started to become dark, I would rest/meditate until dawn. I just couldn't be arsed running around during nighttime because visibililty turned to shit.
Also, not to try and stir shit up, but I find it funny you use LotRO as an example, I tried a trial for the game twice, once at release and once a few years later, both times I couldn't get over how fugly that game was :/