Thanks for playing my game, everyone! I was fully aware of most of the mentioned bugs (and even thought I had fixed some of them like the getting damage out of nowhere glitch) but hey, gotta ship before the deadline :D and some of the design decisions and (lack of) polish were also based on it being a rushjob near the end (like the quit button, etc). But even with those issues I'm glad you could enjoy the game for what it is!
Quests are determined on your armor value compared to the attack of the enemies, which means the game tries to find a camp that you can somewhat tank a few times before dying. But it's not perfect. You don't need to do only quests, as you can clear any camp whenever you want, and there are no quest rewards other than the xp you get from killing enemies. Just follow the compass greens and you should be fine, but even then some enemies are a pain, like the spiders. Quests are there to guide you to somewhat matched enemies only.