And this brings us to my biggest objection to being hidebound about this, and that is that you are "pixel bitching". (I don't know if I can use that term here, but it is the technical one.) By that I mean that you are waiting for your players to say the magical words or phrases that unlock the content, and until they say the right things you aren't going to let them use their abilities. You are saying things like, "While you're traveling the city, what sort of ongoing activity will you be engaged in?", "A wise PC chooses to Keep Watch unless some other activity would be of more benefit than losing a few coins to a pickpocket.", "Passive checks are for when the character is doing something repeatedly, such as keeping watch or searching for secret doors while traveling the dungeon." The upshot of that though is that you are playing in some sort of Kraag Wurld where the players must always know to say the special things that you are wanting them to say before they even get so much as a passive ability check to their credit. Where as, I don't expect players to have to say while they are in a dangerous environment that they are alert to danger and doing their best to avoid it, much less that they have to specify a particular danger to avoid and approach to do so, much less that I will then assume that they are on watch that they are now passive to danger and haven't even earned an ability check. I don't expect the players to hunt through the environment for the right combination of skills to apply to the right sort of things in order to learn things that might be apparent to highly knowledgeable in world characters at first glance. I don't expect players to have to know that 'Lilies of Living Death' are a thing in the world, and that they ought to call out the lilies as a potential hazard before interacting with them. If someone has the appropriate knowledge, I'm just going to roll for them or let them roll themselves (depending on my mood), to give them a chance of recognizing the lilies for what they are in the same way that facts typically demand your attention quite unbidden. A very little bit of this insistence on stating everything in the form of an action would start to try my patience if in fact you are as hidebound about it as you claim, though to your credit you do seems to have this idea that you need to telegraph everything in order to compensate - for example, always first showing an act of larceny before springing pick pockets upon the PCs. Apparently, if they are then always actively stating that they are on the look out for pick pockets, they don't even get to passively resist being pick pocketed?
I suspect that I would have to tell you that my character, as an ongoing matter, would like to be recalling what he knows about the things that he is seeing so as to not be walking around with the assumption that he's a mindless imbecile not paying attention to anything going on around him.
And for that I'd probably get a string of difficulties higher than what I could pass with a passive check. So maybe I'd have to say, "I try to recall the historical, arcane, or religious significance of the thing that I'm seeing, and if I can't I try to have some revelatory insight.", every time I saw something about everything that I saw. I'll do this as an ongoing action and I'll do it whenever I'm not actually stating I'm concentrating on something else."