For those not familiar with my 'entire' blog text (and I don't blame you), the short answer to the question of light and shadow is thus; I have been working on an ambient occlusion light mapper to provide a pre-baked static shadow to take over all the static shadows in the current scene to (a) make them look better and (b) introduce ambient occlusion mapping for free and (c) drop a lot of shadow rendering work to increase overall performance. I am certainly not getting rid of dynamic shadows (as it took me months to add and perfect them), they will simply be employed for dynamic entities only which means less real-time shadow 'stuff' to process per cycle.
I will be removing day and night cycles for the first Steam launch as there is a lot of hidden gremlins to finishing this feature and I want to give myself more time for core work and testing. I am also leaving it the ability for static entities to cast dynamic shadows in the engine as there is still a place for this on higher end systems which can handle the extra processing required for game wide real-time static shadows.
For more information, check out my blog which is currently chronicling the completion of the pre-bake feature of the engine, and in the next days you will see me merge this back into the current shader configurations. It may mean a new set of shader techniques on a new sliders panel toggle, one which uses the pre-bake and one which continues to use real-time shadows. The pre-bake renders the static shadows from pre-created texture images but will combine with dynamic shadows to create a uniform render experience. I also have a few more ideas how dynamic shadow casters can be improved upon but we'll take things one step at a time. You are also welcome to comment in the blog post so I can get feedback on my approach to 'having my cake and eating it', that is, 'better visuals without sacrificing performance'.
PC SPECS: Windows 7 Ultimate 64-bit, Intel Core i7 920 (PASSMARK:5008), NVIDIA Geforce 9600 GT GPU (PASSMARK:752) , 6GB RAM