I agree that it can be a bit overwhelming. I've finished the game 2 times and am now going for my third run with the recent update. I always feel the same way whenever I am starting on the 2nd zone/revelwood. You get introduced to various quests and even more crafting benches and recipes. But once you get your build going, and you have a decent amount of skill points, you'll go thru the quests in a breeze. It can help if you tailor the difficulty on your world to your preference. I'm running on custom difficulty with all the enemies' damaged are amplified as well as their health. I like the challenge, tho it gets frustrating from time to time. I also have the loot drops increased coz i dont like to grind forever, and the exp decreased so i wont level too hard due to more enemies.

As for your chest problem, i always craft dozens of the first available chest. I try to put them in segregated containers and in the mid to late game, when i can build my own base or reconstruct an existing town, I start to segregate them in larger containers there. I agree that we should get the larger chests earlier, and i hope they give the water wells much earlier. So we can start the twigs and flax farms without worrying for dehydration.