I just finished the game, and I'd say it would work really great as a mini-game for a game! Also, was being able to on third hit to take down a tree regardless of which tree intentional? (I hit a tree twice, then I hit a different tree, and it goes down). Anyway, I'd also recommend that you make the camera follow the play in a smoother way, since it was a bit difficult to understand how the player was walking at the start, seeing how the trees were moving, and then I realised why.
Just like what hotfeet said, I'd like to see the player be able to build a cabin or boat and all that too! :D