I liked this, it was a very good start. I did notice some issues, though. There were many objects that it would not let me pick up even though I could pick up the same types of object elsewhere. Sticks and mushrooms were the biggest culprits. When I would right-click on some of them, it would just tell me that I "can't remove the ground". Also, when using a tree or stump, it places the object back down in an upright position, even right through a furnace, which makes no sense. Finally, when you exit the crafting menu, the game does not return to mouselook mode. You have to click first. Automatically switching would be more useful. Overall, though, I enjoyed my time in the world.
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I tried to make it recapture focus, but it never did work out the way I wanted. The crafting was supposed to update upon making an item, as well, but that also got buggy to polish up. As for the objects not being removed, you have to be within the chunk to collect the object. I wanted to fix that, but ran out of time before even getting a chance. Good to hear you got as far as crafting a furnace, though. Thanks for trying it out and giving feedback.