Music is better much better.
But now i have another thing. I would make the spawnrate of monsters lower or/and let them not spawn everywhere. In my head monsters should not spawn on the main road or when then very very rarely.
About the text/quest thing again. I mean i ran about 20 min around and didnt even find the sword. give me a hint somewhere in the game and not only once at an npc which i can easly miss. The shield was ok it is the only bush that is different but i did not find any other hint for the swort. As a dev you know these things because you made them, but it is easy to lose the perspective of a new player.
btw i think you do not use the normalized dir for movement (mabye i am wrong but it feals like it). so when you move diagonaly you are faster.