Hi, Thanks for your interest! Glad you like my games!
Yes, this is the updated Unity engine. There is room for improvement for the lights, agree.
That's right, free camera would possibly reveal what I didn't want to show, like faces, and this would bring down the "magic" :) I prefer to always leave something for imagination.
Clickable cheeks - is an interesting thought.
I'm planning to make a dialogue system, this is just the start.
Cloth is tricky, but not because of the underwear. I can add more layers and textures - after I edited the shader, that's not a problem. It's rather about modeling. But this question is not closed as well :)
As I'm planning to add more positions, I'll add more things to "interact with". Probably benches too :D