I would say the big problem for this game right now is that it has no setting. There is no plot, no impact from the setting, no character development from NPCs, no purpose really except for "beat the boss", no outside agents. It makes this game a side scrolling shooter rather than an RPG.
The new settlement mechanics are a great step in the right direction, making your NPCs a part of the world. But more would of course be better.
And yes difficulty absolutely makes a difference. On TCO you need to pace your exploration and choose your battles. If you get in over your head, you are either dead or going to have to retreat to heal. It gives a sense of realism to the game, as opposed to lower difficulties where it's usually mindless grinding.
But slowing down the game... I would say a better fix is raising the difficulty of the game, and more importantly adding roadblocks to the game. A barricade with turrets you need to destroy before you can proceed to the next chunk, a worthless item you need to find to give to someone in order to enter a certain area, a pair of bosses who won't let you through until you settle their dispute somehow (with presents or persuasion or brute force or something), a machine you have to go down a cave system to find so that you can raise the bridge/magic portal/gate to the next chunk, gangs of high level enemies that may end up convincing you to find a different area to explore until you are stronger.
These encounters would break the monotony and hopefully add setting to the game as well. Not happening for a while of course but there's some ideas.
Also some more speech from NPCs as well as enemies would be great.
The game HAS a plot..... the difference is, unlike WAY too many games these days, it doesnt shove it down your throat.
.....and frankly, I for one would MUCH rather have it this way. I normally try to actively avoid games that have story whatsoever, or at least choose the ones that let me absolutely ignore it as if it werent there. It's usually just time consuming and rarely very well written (and often just downright absurd/stupid). This game uses RPG *elements*, all the stats and the things of that nature.... but it definitely has way more in common with old-school platformers and shmups than with any RPG.
A breath of fresh air, really. So very, very tired of cutscenes and annoying voice-overs these days.
The gameplay ideas you mention though, aye, I rather agree. There are some "roadblock" things in place already.... the need to place Wind Shelters to reach further parts of the continent, or the need to defeat a boss to access a gem room.... but there could be more of that. More stuff that the player has to "overcome" rather than just wander around in would be a good thing, to a point. They would have to be kinda rare though, for the game to still work within it's basic design ideas.
