This is kind of a poor argument. So, because everyone is doing it (“standard”), that, by default, makes it the best and most logical method for every type of game? I happen to disagree with you here.
Kingdom Come is aiming for historical realism, and several other “hardcore” realistic elements (needing to eat, sleep, etc.).
It only makes sense that day/night cycles follow along this realistic path. 1 sec = 1 min is kind of ridiculous, especially for a game that casts shadows. You see sudden shifts in shadows, which should, in reality, be more gradual, to the point of being unnoticeable. This is just one annoyance.
Now, I do acknowledge that the game will most likely be beaten in 50-100 hours for most people. So 1 minute = 1 minute is probably not an option. I would argue for something reasonable; 1 day (in game) = 1 hour (in real life)