Personally I think it has a lot more to do with other factors, but we'll see -- right now I'm more focused on the immediate things that I know will help. Such as:
- Making it so that fewer missions are required per tier (already done).
- Making it so that players don't get stuck for so long trying to accomplish one tertiary goal like getting a specific NPC type (already done).
- Adding more varied types of missions to reduce the sense of repetition from that (working on it, nothing implemented yet).
- Adding more varied types of monsters and environmental obstacles to reduce the sense of repetition from those (working on it, lots implemented but lots more to do).
- Giving players more customization options earlier -- changes with the upgrade stones, with the character type special abilities, and with more enchants earlier (so again working on it, but more to do).
- Adding more spells for players to work towards and craft to provide a longer-form sense of progression past continent 1 (not really started this yet, but something I think will help a lot).
- Adding vastly more varied stash rewards, including lots more spell scrolls (not started this yet much, but something that should help metric tons).
- Providing more options for players at the strategic level, for how to go about building up their character or settlement and thus take down the overlord (working on that; some various things implemented but still incredible amounts more we could do with time).
- Making things like lieutenant towers take a lot less time and be a lot more varied -- a more focused and interesting challenge rather than something spread very far out and too similar to the overlord's keep (working on that for release in the next few days).
- Adding both to what is available right from the start, but also to what is only available starting on continent 2 and 3, so that the game noticeably expands and alters even more as you go further.
A lot of these things are pretty much what we've been planning all along, some are ones that we've picked up since going 1.0, but I think that all of them get more at the core of the issue than punishing the players. All of the above definitely needs to be done and adds an immense amount of value to the experience even for players who already love the game. So that's pretty well where our heads are at first, and some of the finer points of things like the death system and so forth we're pretty much mulling and brainstorming. Not going to rush into anything with those, and I agree there's always room for improvement with any game system (otherwise D&D wouldn't have evolved at all in the last 20 years, eh?).
Mainly I point the above out because it's months and months of work that we know will add value for everyone, and that expands the game in exciting ways even for those who already love it. Meanwhile as solutions (or partial solutions) become clear to mechanics that need to be streamlined or altered, we're obviously doing that as well. Just not really with any rush, because that ultimately leads to subpar results and frustrated players who can't keep track of what the rules of the game are. Personally, I think that as the variety of missions and spells and enemies and all that increase, the perspective on what is really needed in terms of core mechanics changes will become a lot clearer than it currently is.
Or somebody might have the key insight later tonight; you never know, and it definitely does happen. But that's more or less the process we're working on, and the focus that we have aside from flashes of insight that occur.