I've read that crafting kits could be used for extra inventory space (I gather it was something like 4-5 slots, working kinda like the Lutefisk cube does). But I can't for the life of me find out how or if this is still the case. Did this get removed in an update? If so, which update/when? (Or if not, how do you do it?)
This doesn't work anymore. Supposedly, they are going to do something about the inventory space problem (hopefully within the next couple of months) but I don't know when. For now, I just pick a spot and stash anything I don't need to carry around with me there. Then I drag it down level by level.
The OLD inventory system was like Minecrafts, in that you would put reagents in a grid and then hit a "Craft!" button. So, you could just leave stacks of this and that in the various crafting devices. A few patches ago (about 5 months ago, now? Something like that), they made crafting more like Terraria's, and all that "space" in the crafting devices disappeared, since you no longer drop items in a grid, you simply select recipes out of a list.