In the future (when PS will be nice and pretty) I believe that NPCs should have a simple (but not scripted) 24-hour schedule. Like as the saying here:
\"Our virtual world is persistent, and this means you can connect to it at every hour of day or night and you will always find players and npcs wandering our realms. \"
if I remember this... a non-scripted 24-hour schedule for an NPC requires a good AI, similiar what an average player might do. (such as if the NPC is hungry at his/her home they would go to their dinner room get meat sit at tabvle, ect). Another example I remember seeing from the next-gen morrowind game... A women was trying to fire arrows at this small target, which she is VERY bad at. Then she knows that she needs something to improve herself, she goes to her cabinets and drinks a potion which increases her Archery skills. And since the DEVs wanted a \"living, breathing world.\" They can add some things out-of-the-ordinary. Such as thiefs breaking into shops during the night, ect.
And also I would like a smarter NPC... say that a normal civilian is attacked by this high leveled thug. So he cries out for help from nearby civilians so the civilians gang up on the thug, tie him up, report to guards, ect. and something like that.