So, my friend plays an mmo called "Age of Wushu" though, I believe it's still in it's beta phase. Anyway, this game has a mechanic that when you log off, your character continues to live on as if it were an npc in the game: (direct quote from an article on the game)

One of the more intriguing features in Age of Wushu revolves around the Offline Mode. Opposed to many traditional games, in Age of Wushu when you log out of the game, your online avatar begins to live on without you as an NPC. Once offline these players are able to accumulate silver and experience for the player when they log back in
Although, atm all I can think of that would be beneficial from this would be the bonus stuff you could get, as well as a much more lively environment.

However, I do see drawbacks with this....such as the lag >.> And I'm not sure if this would mean your character would end up somewhere else, or if they would just phase back into your inn room/housing when you log back in.

I just think it would be really cool! And would look much better than characters just standing still in town like bunch of statues. Though, I probably am just getting a little bit ahead of myself. I can't imagine how difficult it would be to program.

I dunno...what do you guys think?