Yeah, the whole not moving thing is still a design choice that we're on the fence about. I think the game would feel better if you were able to use 3-4 weapons per round, that way you have a variety of movement options, but we might eventually just go with straight up proper arrow key movement.
Sword is pretty tough to get to: You've gotta make a crucible, add charcoal to it to get a forge, use the forge with some iron to make steel, use steel + forge to make a sword.
Unfortunately Kraft&Slash has been on the back-burner for us cause I've been swamped with school and Artificer, and I'm pretty much the only dev. With the bugs and missing features, it'd still take a pretty big amount of work to shape up this game. Once my other dev (Mark) comes back in January from his work term in LA, we might get back to work on this game.
Hope you stick with us, and have a nice day!
- Dpodz