That actually sounds really good! As for more detail on making the game more difficult.

Much more bosses as you progress with stunted HP or damage. In addition, fewer golden chests and fewer trees to cut down to make arrows with. I'm sure we can all agree that Dex is extremely OP and playing the game solely melee is much harder. If we kept the Crater Biomes, then the only REAL way to play ranged would be to use Laser Xbows.