First of all, huge thanks for making this discussion a thing. Seeing a developer have a direct conversation with fans regarding balance suggestions was enough to get me to register and join in.
I want to add my voice to the horde expressing a distaste for the torch luck mechanic. The fact that I had no idea that "luck" was a concept in the first place until stumbling across a few threads, not even after regularly looking up new 1.4 info on the wiki, says a lot about how buried and obfuscated the mechanic is. And that wouldn't necessarily be a huge problem if it was a purely positive-effects mechanic, or if bad luck was related to more obvious things like killing ladybugs or NPCs dying...but I genuinely do not see any benefit to having torches of all things affect drop rates (and even worse, damage output!). In the several years I've spent playing Terraria, I've never had any interest in crafting colored torches; it's hard enough to manage inventory as-is without cluttering it up with duplicates of the same functional item. But hearing that the most ubiquitous item in Terraria, the item that pretty much every player crafts by the hundreds without giving it a second thought, can actually
harm your playthrough in some way? Yeah, that's...not cool. That goes double for people playing on older maps who may already have thousands of torches laid down across a particular biome and are now faced with either replacing them all, or just eating the penalties. At the very least, leave plain old neutral torches out of the system.
Speaking of inventory management, I can sort of see the rationale behind changing how vanity inventory slots work, but all it's done from a player end is produce inconsistent behavior and add a minor annoyance. As stated above, it's hard enough managing inventory in this game, and the ability to hotswap accessories with a simple right-click was a godsend when it was introduced. There are many accessories like the yo-yo or fishing gear that I might only use in limited situations, and the fact that I can now right-click them one way but not back the other makes for a frustrating experience. There seems to be little rhyme or reason as to which accessories count as "visible" and which don't, which makes the change even worse. I hope that this is something that can possibly be reconsidered.
About NPC happiness...again, I get the intention here, and the ability to unlock pylons as a fast-travel reward is a compelling incentive. But just like in the case of torches, the fact that there are negative penalties imposed for playing the game I've always played it just rubs me the wrong way. To be frank, I don't really have much interest in building anything of note in Terraria. I know many people do, and that's fantastic, but I'm far more invested in the exploration and combat then producing any sort of intricate builds. (That may change if I start a Journey playthrough, since building something complex without being able to disable mob spawns is a non-starter for me.) If I want to keep building my Soviet gulags of plain wood right at spawn, as I've always done, I shouldn't be slapped with a harsh financial penalty for doing so. Terraria has always been about allowing the player to progress through the game as they choose, but between this and the luck mechanic, it genuinely feels like there's a sentiment of, "Do things our way, or else!"
And finally, I know this probably goes beyond the scope of this thread, but could we please,
please get some protection for the poor Jungle? I was hoping against hope that 1.4 would finally prevent it from getting inexorably swallowed by evil biomes, or at the very least give us something like a dark green Clentaminator solution to be able to restore it, but nope, it's still the same old dig-Hellevators-and-pray method. The way the Jungle behaves is the main reason why I don't smash Demon Altars anymore, because I'm worried about random evil biome bits spawning right in the middle of it and utterly trashing it. (And now Hardmode crate fishing will be much harder, but I'll bite that bullet.) Honestly, it makes no sense to me how after all this time, the Jungle is the one biome that can be irreparably destroyed in Hardmode. The ice and desert biomes get their own good/evil variants, and even the ocean is a simple Clentaminator spray away from purification, but the Jungle just gets shafted. If we can't get this changed, could we at least get some sort of explanation as to why this remains the case?