I didn't expect the drag controls at first, but they make a lot of sense once I read about them on the game's page :]
This reminds me of how I love playing Worldbuilding TTRPGs, except it's a videogame! It encapsulates both Fusion as well as controlling the environment perfectly. I could see myself really getting lost in this and creating little fantasy maps.
I keep wanting to build as much as possible before dying so I can make a little screenshot of my little village. Since you lose everything once you die, I would love it if on the game over screen it shows you one last picture of whatever you've built, so you can save it for later before trying again.
Another feature I would like, maybe there could be some kind of "recipe" book or something, instead of having to remember which combination does what. You would unlock the recipes once you discover them and they would carry over to the next playthrough. One game I can think of that does something like that is Sokpop Collective's "Stacklands".
Although I understand if something like that wouldn't align with the vision for this game, having to remember everything and even keeping physical notes certainly makes it more retro. :D
My favorite thing about this game was probably how it just had this vibe of an old cursed game somehow - like, the graphics evoke nostalgia, but the "Sanity" meter alludes to something darker...