I think something that people sometimes forget is that Blockland lets you build things with your friends, and blow things up, and do goofy stunts in cars, and generally be creative. These are its strong points. You certainly don't have to use all or any of these in an RPG, but you shouldn't forget them either.
As an alternative to having to having to chop down trees and mine rocks, consider that Blockland is a bunch of plastic blocks and make the resource plastic. The trees are made of plastic, the rocks are made of plastic, the people are made of plastic. Instead of making Blockland trees, something they're not (real trees), make them plastic. Once you get past this idea of trying to turn Blockland into a hyper realistic logging simulator (oh god), you open up room for lots of interesting and amusing gameplay mechanics. Why do I need an axe? Why can't I just blow up the trees with rockets or run them over with a tank? Maybe tanks and rockets don't fit into your theme, but then again, out of all of the great RPGs I've played, I've spent exactly 0 minutes cutting down trees, and what "mining" I did consisted of essentially sneaking into mines and robbing them.
Do less things that are inactive and mindless, like logging, mining, and farming. Do more of things that are engaging and active, like fishing, driving, exploring, and construction.