Mythruna

Once you add physics and character creation and such, what will you do in terms of the camera? I'd really like to be able to look down and see part of my body and feet instead of nothingness.

That will come... probably with animation.

There was a version of the game where you could do this but if you looked straight down you could see through your body... and if you looked just a little down you couldn't see your feet because of the avatar's boobs.  Both indicate that a proper POV would have you lean forward when looking down which requires somewhat more sophisticated camera+avatar+animation linkage.

it would be quite a nice detail to add if you can. how would you do what's in your hands? like, if i have a sword in my right hand and a shield in my left, would it be like minecraft where your item is just kinda floating there, or could you have your character holding the items in a fashion that is easy to use yet still links the item holding to your hand/arm/body?

Items will be held in your hands... there will also still be the orbs in the lower corners as indicators of what you are holding and its current state.

right i've looked at the orbs you have already for the other mode that does nearly nothing. and i meant will we see our hands and arms whilst they are holding the item

Yes, if you are looking in a direction where they would be in view.