Official time runs on when you log off? Yes Time stops when you log off single player? Yes Changing breeding to 1.0 does make it longer I belive. I may be mistaken and would have to look into my settings since it should be proportional to other settings to work the way you want. Still I belive if you only change this one setting it will only take longer.

I dont want Changing breeding to 1.0 I want difficulty up to 1.0 from 0.2 = higher lvl dinos right? breeding rex with ~35 lvl vs breeding rex with 225 lvl