And more importantly, Stuff that you craft with is not whole Cubic Meters worth of Blocks. You dont need ⅓m³ of Iron and 1m³ of Wooden Planks just to make a damn Pickaxe.
Small Items will exist and be the majority of Items you encounter. Only building Materials can end up clogging your Inventory (which is why more creatively focused people would get a “Bag of Holding” for Inventory expansion).
I will likely add a Wheelbarrow like Dwarf Fortress has it, where you can just dump a bunch of shit inside and then move it around inside your hands like the Dolly from that broken MC Mod. Or just have a Bucket and dump a bunch of Stuff in it to make it easier to transport, the possibilities are endless. Or even just use an actual Barrel to store Stuff in and roll it around!