I agree with this idea. The issue with Minecraft is why build railroads/other transport means when i can shift half a mountain by myself. Now the opposite is also true, I want to craft this item and for that I need all these parts but can’t hold them. This leads to game frustration not inherent to the difficult to the game, not a good thing.
It’s a fine line between the two. Personally I like the idea that you are limited in space at the beginning but can craft bags and belts fairly early on to increase space. By mid-game space shouldn’t be a concern. as you would have progressed to storage, better inventory and transport means.
There is a little game called Neo Scavenger where you wake up in a dystopian cyber future and have to fend for yourself. In that you have two hands, that was all. Early on if you were lucky you could find polythene bags or empty chip bags to hold sting and shards of glass, then later if you were lucky, sleds and sacks you could drag and backpacks you could wear on your back, so in essence you could have a backpack full of stuff and drag your stuff around.
Inconvenient yes, I believe that was the nature of the game, but the idea remains the same.
You needn’t make it so difficult just more natural.