Imo the pixelation looks really good, because it works together with the cell shaded look, where the shadows don't transition to the light areas, and instead are in contrast to eachother. It looks very good, and has some nice sound effects. The ones in the menu sound silly, which fits the game. It seems that it takes most players a failed attempt before understanding that you need to heat the bar first. To nudge people into doing the right thing, maybe he could have the character start behind the heating place instead of where you hammer, so that people start with that. Maybe the parts of the table could me moved around so that the character still starts behind the middle of the table. More features could be introduced, because right now you get bored quickly. I mean the base game is already there, so why not build on it?
why not just add step by step tutorial for a first test dagger
Which (dagger) also will give sense of first accomplishment and first money for selling first dagger
and you can Literally add feedback text on screen after few hit on cold metal
like "its too cold - Add some heat" or "its too hot and soft"
just add some obvious Indicator
For example temperature Bar should have not 1 line but Range of perfect and middle zone on it