Those are good questions

1) the main plot quests will have fixed points, after the time has passed you won't be able to go around grinding. Example:
day0 - game start, you get quest to save your father
day0 to 10 - you can roam freely, start sidequests (most sidequests will just happen continuously, so like one will consume 1 day, another 2 days, and so on, but will be rather simple)
on day10 you need to advance to the next plot event. However, most sidequests would still be available until the next season.
day 11 to 15 - save your siblings from dingirrans, but you can still do any unfinished sidequests available, etc
So it would be REALLY strange (if not impossible) to run out of time to do sidequests. If someone waited for all the first part days and started them the last day, then yes. But then you can't call yourself a RPG gamer
Instead, there can be small random event like encounter a wild animal, etc, that aren't really quests, but similar to Loren's city tasks. Doing each of those will advance time, so you can't do 100 of those tasks to reach level 30 in the first chapter.
And yes, you can go back to your home and rest to advance +1 days

2) well, is not entirely true, surely auto-leveling enemies solve a lot of problems, but as your party levels up and get new skills, they WILL become gradually more powerful since they have access to more special attacks/spells that will help solve more situations. Also, is a bit lame if you reach level 15 in first season and then you have 15 more level for the remaining 3 season. In general I want to control more the player progression, at least for levels. PS1 combat worked much better than Loren in term of balancing for various reasons but one of them is because more or less I would know which level you could be at point X of the story
