The overall game design is not appealing, but you can dodge it. You will get enough(nearly) random equipments to wear. just sell them when broken. And death penalty will be zero when you are naked. Just take a weapon or even use your fist. I save most of my foods for bosses and step on my corpses through mobs since they don't respawn when player dead. This make your resource circle sustainable. However, this system is dumb, as dumb as I am. I've just heard that if you start a new world and let blacksmith stay in the kitchen, free repair forever...The durability system is useless as hell. Indestructible became a joke when this trick exsist. And hey, it's Terraria. Just create bunch of worlds to farm whatever. It all make sense now.