It would be simpler to let you write a document per NPC and be done. DMRealm asks for a little more structure than that, and it is worth explaining why.
A document can only be read. A linked record can be found, listed, drawn on a map, put on a timeline, counted in a collection, shown as a graph, handed to the AI as context, and checked against permissions. The same sentence, written as a link instead of prose, does far more work.
What that buys you
- Opening a city shows the people, factions, and quests attached to it, without you maintaining that list.
- Renaming a faction updates it everywhere, because there is one faction rather than forty mentions.
- A wiki page can pull a live list of your coastal settlements instead of a list you have to remember to update.
- The AI drafts with your world in view rather than inventing a generic one.