Before Java edition beta 1.3 it was impossible to skip the night and nights were dangerous: pitch black, monsters from which you won't escape (because sprinting was not a feature yet) and etc. The night essentially meant death, so you had 3 options: option 1: dig 3 blocks hole, jump in it and place block on top; option 2: build a sustainable base from which you could see when day comes; and option 3: DIE (though there is a chance you survive). And so I feel that most people would choose option 2. And I don't know how about you, but building that kind of base sounds amazing to me. And then beds were added with their "skip the night" feature. So now instead of building a base you only need 3 wool & 3 wooden planks to entirely avoid the danger that is night, so that means no more base and no more challenge.
So beds are really overpowered. How should they be fixed? Well, here are my suggestions:
1. Rework phantoms - so that instead of forcing you to bed they would force you out of bed;
2. Make that the players would wake up in the middle of the night, but they could go back to sleep (also you could add reasons why they woke up: maybe they ate to much, etc.);
3. Add (dreams and) nightmares - nightmares would always wake you up, and you wouldn't be able to go back to sleep, it would have a random chance of happening in overworld and 100% chance of happening in the Nether and the End and wouldn't wake you up.
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