I agree that the game world is lacking in life, and movement, and just about everything you have said.

But one thing that really bothers me is how bright the game is. I feel that a higher contrast between light and dark, and day and night would benefit the game. I can be deep underground and there will be light, coming out of nowhere. Now I don't think that the game should be so dark that you can't see, but when the only time I really notice it is night is when I look at the sky, something is wrong.

Now personally I would like to see the game get quite a bit darker, and the characters are then given lanterns, or torches to see (mages use their stave, that would be cool) that they can pull out or put away at will. Now the light should not be hindering, but enough for some atmosphere, and how cool would it be to see lanterns in the distance, campfires city lights. The contrast between light and darkness helps bring atmosphere to the world as well as adds to the beauty of the game, you did a great job with lighting with torches and campfires, now the world needs some darkness to show it off.

Things like light can only be appreciated if compared to their opposite, and we don't have much darkness.