an artist who can't program shaders won't come very far in this regard at the moment.
Exactly - so I guess its not a question of whether 3d gamestudio can do it, but rather if the programmer has the skills to do it ^^.
I guess the main reason for not seeing this type of thing in 3dgs is because there is no out-of-the-box solution, as most of these other engines seem to come with.
Is there any way to get out of baked lighting here? I am going to have day and night and weather systems so baked in lights will not work with the type of game I am making. The player will also be having the capability to carry lights with him so baked in lighting and shadows will not work with that.
That would be a problem with every engine - dynamic lighting and baked shadows not working. Although I am sure you could use shaders that dynamically light objects, plus some version of shadow mapping + AO/SSAO or similar to create nice lighting

Thanks ^^
Adoado