This is a really neat idea and I had a lot of fun messing around with it. I would focus on User Experience as you're developing. To really make the UX feel polished, every time there's an event, give the user some satisfying feedback. That can be a sound, a visual effect, or even a simple message "Cannot select new wall piece yet".
I never got the hang of things... wasn't able to do anything with the boat or the tent or the person. But I was able to explore each island and get the memories, and it was incredibly peaceful. I enjoyed it and look forward to seeing it further developed.
Really well put-together game! I loved the clean graphics and the individual cassette art. The gameplay was also well done and the whole thing really embraced the theme.
