Im not entirely a fan of my axe/hammer/etc being tied to a single contextual button that you press and hold. I believe it would be better if the Omni Tool took a single item slot (maybe add a Tool slot). Once equipped it would function the same way the axes and hammers did in the first game (swinging with mouse click/ RT on Xbox controller). The contextual use can stay as it would pick the appropriate tool depending on what your looking at.

The press and hold functionality that exists currently leaves a lot of error, especially if there are many resources near each other. You also tend to be interrupted if your buggy passes through your crosshair in third person.

I second this, was going to comment the exact same thing. Another frustration about the current implementation on controller is that you can't hold your right thumb on the control stick while digging/chopping/smashing, because you need to hold the x button, making it far less efficient to move from one resource to another.

100% agree, the context action has already caused me issues. I was attempting to dig up grubs, but it kept trying to cut down grass around me. The omnitool should just be a separate hotkey, "9" or "0" would work, and you should then be able to hold that key to select the function you want from a radial menu, or just press the button to cycle through the functions. 

I also just miss the ability to perfectly position between a few grass stalks and hit multiple of them with a single swing. Was nice to clear cut a section using optimal stamina.