I've been busy with real life lately, but I will start work on v2.0 this weekend and hopefully finish by the end of October. Here is a list of the planned improvements, but I am always open to more suggestions:
1) Most importantly, there will be a new World Editor launch app, which will be like the main low-res game app, but it will allow you to open two editor modes: GUI and a command prompt. You can edit anything while you play, including maps, dialogue scripts, AI, etc. You can also erase the entire game and build your own story from scratch, importing any models you want. You can then save your new story file for others to download and play.
2) The max number of objects per map will be increased from 2000 to 5000. The game currently crashes if the player hoards too many items on one map. This improvement will require larger save files, so old saves will not be compatible.
3) A few new menu options, including one to increase the frame rate from 33 to 66. These new menu options are another reason old saves will not be compatible.
4) Hopefully I will fix the bug where textures flip upside-down. I have a new version of the compiler which fixes it, but it doubles the loading times and causes a couple other problems, so I may just add another launch option if I can't fix it in the current compiler version.
5) There will be bloodstained textures for injured characters.
6) A simple challenge story file to demonstrate the World Editor functionality.
Please give me more suggestions. I can't promise they will be implemented by Halloween, but I can try.