blotunga: Why shouldn't you be able to rest in the wilderness? Haven't you been camping? And why would the town guards let you sleep on the streets? I think in this matter Baldur's Gate's approach was fine. You could rest in the wilderness, but with the risk of being attacked during the night. In towns you could rest but only in inns. Also why would towns be completely safe? Crime and violence happen in towns usually even more often than outside. So I have to vote for WRPGs here too.
From a realism standpoint, this argument might make sense.
From a gameplay standpoint, however, there are good reasons not to allow resting at arbitrary points. Consider that one has to implement the option to rest, which requires specific effort on the part of the game developers. Also, if you can just rest anywhere, the whole issue of having to conserve your spells (or other resource that is restored by resting) becomes moot, as one can just rest after every battle.
Personally, I think it makes more sense, from a gameplay perspective, to take one of two approaches instead of rest anywhere:
1. Allow resting only at inns and save points. This could even be made into an automatic full restore when you reach a town or a save point, making it unnecessary to locate an inn and wait for the resting animation to finish. This choice works well if the game is designed around having to conserve your resources.
2. After every battle, automatically restore the party's resources fully. This allows the developer to make each combat a challenge that is expected to utilize all of the player's resources, and allows the player to freely use spells and special attacks in every battle.
Either approach is better than rest anywhere IMO, as it becomes clear what sort of gameplay is expected.
If you want a halfway approach, make some resources recover after battle and others recover only in town; this creates a distinction between abilities you can use in every battle (but not every round in every battle) and abilities that you save for emergencies.
(Note: A game with save everywhere could still have spots that act like save points, refilling your resources; however, such games should also have some emergency escape feature like the "Mr. Wizard" feature from Might and Magic 3-5.)
almabrds: Yeah I don't like the game limiting my options just because I stepped inside a town. Have you ever played a RPG and the DM told you "I didn't expect you to start combat here, because this is a town. Put your dices aside, you're not using them now"? Even if the DM doesn't want you to initiate combat inside the city, there are better ways of doing that, by making the player less likely to wish starting a battle.
The way I see it, from a JRPG perspective, it isn't the game limiting your options, but more like the game not even implementing the option in the first place. Attacking an arbitrary person in a JRPG doesn't make sense, as such people don't even have stats, so there is no way that the game could handle it. I could compare it to, say, casting spells in chess; the game has no rules that would allow such a thing to be done. If a player wanted to do that, there are no rules that say what should happen; it's just not part of the game.
One other thing: Simulating reality is not always the best decision from a game design perspective. Yes, it may be realistic if the PC has to eat, drink, and go to the bathroom, but unless the game is designed and balanced around such features, it just isn't fun for the player to worry about such things. There's also annoyances like Baldur's Gate's "you must gather your party before venturing forth" mechanic (which only applies to normal exits and not those with scripts); it's just not fun to have to wait for your entire party to catch up to leave an area. (One other note: In JRPGs, your party is always together; hence this issue does not ever arise.) A similar issue is the range limit on trading items; sure, it's realistic, but it's annoying, and makes inventory management more of a chore than it should be. (I note that, for both of these cases, the broken pathfinding, combined with the fact that you are *forced* to use it (you can't just control your characters directly with the keyboard), these problems are actually even worse than they should be.)