Why it asks you to link things
The one design decision that explains most of the others.
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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.
The cost is real, and deliberate#
Structure asks something of you up front. The bet is that a realm you will run for two years repays it many times over, and that the moment it repays is the moment a player asks a question you did not prepare for.