You are tasked with adding one element of realism in AO. What is it?

I would add a guy in every town that pickpockets you if you stand still for too long. The guy steals galleons or a random item. If you want the item or galleons back you have to chase the thief down until you catch them.

let characters blink

Depression.

this is already being added
except that it only happens when they bump into you(and you can just kill them to get money back)

being lore accurate, firing one blast at any sky island’s cloud would make it collapse into the sea

I mean have you checked

nope