This game is actually extremely fun. Can anyone recommend some non-eroge that have this kind of gameplay loop? The only one I'm familiar with is Minecraft which is not quite the same.
I think the genre is called "open world survival craft". Note that unlike many games of this genre, Mad Island allows level-grinding.
How about
Palworld? It seems to focus on capturing companions.
Arc Survival Evolved if you like dinosaurs.
Planet Crafter takes an unusual approach because progression is connected to terraforming.
For some reason, I liked
Forgotten Seas.
There are also more construction-themed ones, such as
Planet Nomads,
Planet Explorers and
Empyrion, which allow you to build your vehicles brick by brick.
Games like
Terraria and
Starbound combine this with metroidvania gameplay.