BlueSoupLady

I agree. Doing this will create its own issues, but will be more realistic. If you have something in your hand, or are wearing it, it shouldn't be in your backpack. If you have your tools and armor, there isn't much space left for collecting resources.

Please make it so when an item is in your hotbar, it doesn't take up inventory space. Also, there is a problem when you have two of one tool - it is hard to keep the more used-up tool in the hotbar. Too often have to fight to get the wanted one equiped. Please make it easier to chose which one to equip and stay equiped. Third suggestion: when you retrieve your items from your backpack, have your hotbar and previously equiped armor restored to its rightful place.