Thank you! I appreciate and agree with both criticisms, the health system, as it stands, feels kind of pointless. The original idea included a mole enemy that would randomly spawn from the background wall, with its chance to appear increasing every time you dug, and would attack the player and the pipes, but we ran out of time :(, so I figured I could still salvage the health system by adding fall damage, but it backfired lol, oh well.
Regarding the input, we're not too happy with it either, so I'm already working on a post-jam fix that involves incorporating the mouse and combining several inputs into a single context dependent cursor (if it's dirt, then drill, if it's pipe, then grab, if it's nothing, then place the currently selected pipe).
Glad you enjoyed it and thank you for playing!