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So I played a while more, and realized that I never got to see the strongest neutral monsters when I played the first time. This time, in the very deep underground, I met Paladin (200 hp), Dark Knight (150hp), and Cyclops (160 hp, knockback effect). Are these the highest tier enemies? Are there more (Devil, Titan, Treant)?

In addition to Cyclops knockback, I noticed that engaging ranged units in melee combat reduces there damage - just like in Heroes series. I suspect you implemented tons of mechanics that aren't obvious on first playthrough!

I tried using Bow, and it doesn't seem to shoot. Neither F nor Tab do anything - am I doing something wrong?

Do weapon rarities matter at all? My legendaries are often +5 stat, while my common/uncommon items have +20.

I'm Sorry, the ranged weapons are not functionally ranged weapons, they just give you attack power for now. You can only do ranged attack when you have the ability based on your character. And higher rarity items can be more good items, but not always. It's random. If I make higher rarity items always better than lowers, actually you won't need to identify items. But yeah, items are very raw. I should update that.

Perhaps giving higher tier items some kind of special that is only usable once identified would work? For example, a Legendary Dagger that has a 10% chance of instantly killing the victim, or an Epic Longsword that has a 10% chance of a critical hit, or Armor that when your opponent hits you has a 10% chance of knocking the enemy back, etc. Another option is simply not showing the tier tag at all until it is identified. Or even do both!