Is this closer to what was in mind?

I'm not sure how I feel about this join idea, but the Kingdom Hearts toy designs feel too action-figure-like as opposed to Lego minifigures which have limited joints.
The charm of having limited joints like how a Lego minifigure does is that there is a limited range of motion. With limited range of motion, animations could be more creative by embracing the limit rather than moving away from it. As an example, look at the animation in the Lego movie compared to the older Lego films/animations.

Not only that, but I think it would be best if the characters are going to be compatible with the bricks around them like how Legos are and similar to how Blockland is. (Basically having proportions right)
But anyways, this is only a suggestion from me.
Is there a specific brick height I should aim for for the character models or is that still to be determined?
That's really good and yeah, it's much closer to what I had in mind. Maybe for now, the character can be around the same height as the Blockland minifig.
I'm not set on the toy idea, right now just trying to come up with concepts to work on to see what works and what doesn't; it'll take some time before the final decision is made on the character's design. It would be interesting though to be like a toy / action figure that can build mainly with legos, and possible in other ways. You could also drive toy-theme vehicles, and choose characters that are based off other toy brands (like lord tony mentioned army men, etc.). Plus, if I went with something that was very reminiscent of a Blockland or Roblox character, people might complain about it being a clone or ripoff.
Then again, the minifig idea is safer and as you mentioned, does have a certain charm to it, which even I love and don't want to modify too much. So, I'm not set on anything yet, it'll just take trial and error. What do y'all think of the joint / toy idea btw?
I thought Unity was packaged with a weird version of MonoDevelop
It does come with MonoDevelop, but I'm not sure if it can be used for modding in-game.
Hopefully you will follow through with this. I know you are able to stick to projects well, but I'm hoping this won't become another major blockland project that dies off into obscurity.
As long as people remain interested in the project it would really help motivate me to finish. If I can get a playable demo released soon, the project would really begin gaining traction.
That is a LOT better than the current colorset system we have actually.
It'll definitely provide a new experience when building / painting. Players will have to think about their builds in a new way when the color palettes they can choose from are nearly limitless.
do you plan on releasing a demo for this when the game is in a playable/user friendly state? i'm really eager to see where this goes lol
Yes certainly. I would like to have a single player Alpha demo released soon (rough guess would be in a few weeks, depending on any issues that come up). Then maybe release a multiplayer Beta later on. =)
Small Update: Everyone's suggestions so far have been added to the topic OP; let me know if I forgot to add anything. Also, removal of planted bricks is now implemented! The script for removing bricks from builds is automatically set up to remove multiple bricks at once, so I should be able to start on brick destruction tomorrow. I'll also start work on finalizing recoloring of planted bricks, repositioning planted bricks, UV brick rotation and brick snapping / errors soon.