I'm not an expert on these things, so maybe this is idiotic, but can you do baked shadows with moving light sources? The sun does move in the game, doesn't it?
STALKER does it with static lighting, where there's a preset shadow for every static regardless of any illumination from the sun or from flashlights or whatever. NPC shadows are dictated by the sun, and i don't recall if movable objects have shadows. i think chairs might.
Red Dead Redemption does a similar thing but a lot better as far as lighting from the sun is concerned, and if i'm not mistaken has dynamic shadows from other lightsources (campfires, lamps etc.). actually the whole RAGE lighting system is really really nice for a console game.
You would need to cheat it and create 24 different shadow maps (or maybe 48) ahead of time for the static objects. Which would take a very long time.
this sounds so pointlessly complicated it's hilarious.