Thank you for playing and for your feedback!
The items drop because in some levels you might get an item that needs to be on the top and you can then spawn another you need to place lower. If the spawned object was held, the players would have to drop it then spawn another. Plus we feel like spawning all the items feels fun and messy, like how it would be in the real world!
That's a good idea to re-enable the soil/sand after an object has been dropped! We'll add it after the jam as it requires a little more code and it's more of a feature than a bug!
Thank you!