1) I think the blocks at the bottom of the screen are a good indicator! Since they seem like they are split apart it draws the player towards them to see what's happening with the other locations. The only thing is it might need to be changed if you add more detail but splitting art that exists fully visible elsewhere in the scene is a good way to accomplish the same thing.

2) I like the idea of trading up and constantly "upgrading" the items you are working with, would be cool when you work more on the art to have items get more and more detailed as more valuable or later on in the game, something like that.