[Kamaeru]

See: Majora's Mask.

Smallest overworld ever, dense and rich with secrets and things to do. People to see. Events to take place, and at different times.

By adding a three day event time line, they can instead of creating a new area for the player to visit, create a new event to occur in the same place on a different time.

It really doesn't get much simpler to explain than that, folks.

Area too small to hold all the content? Schedule it to occur or exist at different times. This theoretically means a day/night system cuts the amount of overworld space you need by half. Meaning the overworld space needed in Majora's Mask's development was effectively cut into 1/6th of that which they would have needed to create the same amount of substantial content without a three day time system.

lol