Seems the fact that the player needs an empty hand for a lot of navigation and the fact that the player sometimes gets things stuck in their hand has collided. I don't want a softlock to be this easy.
Part of the design philosophy is to have all crafting, building, etc. be done in the world, not in a menu or inventory.
Being able to destroy blocks (not just pick them up) is a somewhat exclusive ability, currently only possible with the destroyer. I am leaning towards a destruction option since its a punishment for getting in a poorly planned predicament.
Expect something in the next minor content update. For now, the <reduce> cheat should save your saves.