This is an amazing Diary, as usual. Now, regarding combat.
IF I am not mistaken.. I know it was said in a diary or.. somewhere, at one point. That you'd like to add NPC Factions, as in.. actual humanoid npcs we can fight. So I suppose that would mean Bandits, Pirates, Guards etc. (I still think pirate NPCs on the sea would be amaaaazing)
And when those things hit. Yea I would like a neater combat system.
You said about not having collision. and some people...