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To address your points 
1. This is very helpful, many tmies through playtesting also showed us that it was more intuitive to drag directly from the box. Had there been more time and with more experience as a coder we could have done something around these lines

2. There are 4 different characters that do different actions, when switching levels the characters in the level switch. There is a character list on the right to show the different players. Given another shot, we would have clarified the specific movements, but overall I get the viewpoint.

3. The pause is more for knowing how the characters are positioned during the simulation, the player is not supposed to move blocks after the simulation has begun, only when the characters are at their start positions. 

Thank you for the feedback, we hope this clarified some things and hope that this puts the game in a new light for you! Receiving comments like these helps us out as first-time developers very much!