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That reminds me: Small healing items are practically worthless. At best, you get healed by a little amount and get lucky the enemy doesn't take the hp back on their first turn. I always thought item usage was supposed to be a free action, but I don't know if you have power over that, considering the engine you're using..

No, by default in most RPGMaker games item use is an action in battle. There's probably a way to tweak that, but I'll probably leave as-is for now. The smaller healing items are minimal in their help in battle, but not completely useless: one should often be just enough to buy one  or two rounds more than you would have had otherwise, though obviously they become pointless if there are a lot of enemies still attacking.  It's certainly arguable they should be a bit stronger though, and something I'll consider as I keep working on chapter 2.