All right, new patch, new features, new balance - let me explain the changes that I had experienced in order:
Balancing - breeding has gone through a major change, but what I consider major is ability to hatch in any enviroment, just with penalties, which removed the old system restrictions and made the crystal room from not exactly great for maximum stability when you have high magic characters with incubating trait to a viable alternative to ice room, due to new system ensuring that it will be a simple bonus that is easier to handle, while incubating trait still is great for maxing out production.
The fusion/breeding focus was removed for rather understandable reasons, but instead you can upgrade characters genes by combining ones of same value like with old fusion focus, so the mushroom essence strategy is still valid, however the ones related to inhereting levels and such instead incur a permanent cost increase, which means you can only use such options for only so much until its cost becomes untenable and effectively unusuable till new game plus - its to stop how good they were long term, but it also means people will just use regular options and only use them if they have no other option to. Stacking ancient power and using level fusion to skip its drawback for high level characters from challenge portals being one old trick that is now expensive to run.
The new character abilities are quite a gamechanger on plenty of them - the guardian succubus and soul human can freely change abilities on any character, though in case of soulborn human, the transformation related abilities they had cannot be accessed anymore unless you have a angel demon to use their shift skill, though you can apply their abilities on practically anyone, including non inheritable abilities, making them very flexible and very powerful, especially considering you can have multiples of abilities that are normally exclusive to 1 character, like resurrection and summon copy. While its bugged to adapt a character when you change skills that way, there's also issues with other characters trying to change their non inheritable skills being unable to do so due to the system not being fixed yet. So you can end up with certain permanent skills by mistake unless you play said 2 characters who can change freely. And yes, if you summon the human creators via archive while playing as said characters, you can adapt their 0 mana damage skills on anyone, making them redundant to play as seperately. You still have to improve magic power to make their skills shine, but once you do, the field will be turned into wasteland really quick.
Less powerful but notable include the "goblin" elf who crafts items at 2 levels of upgrade, which means equipment crafted by them will start twice as strong if its special equipment, making them fast at upgrading gear and strong at same time as long you get resources to keep it going, and professions like soul reaper becoming stronger as a result when playing as them. The brother lady can recruit bosses, both animal or otherwise, which allows you to greatly turn the tides in your favor, if you can teleport them and then fuse said characters to ensure they wont eat your food supply while adjusting them to your needs, and able to get them without relying on challenge portals to do so. However, I think by doing that you get denied of their boss drops, so if that's the case, then its more of a drawback than anything else, though arena recruitment part would be a strong boon, if not for existance of necromancer character who can ressurect defeated fighters(as well 2 characters who can adapt their skill), especially in gacha modifier that hardens recruitment. There's also others, but I do not think they are strong or notable to be included here.
Simplified modifier is quite an interesting one, as it removes the concept of growth, and compared to equality world modifier, it does a much better job due to fact instead of encountering level 5+ enemies to make up for its obvious drawback of limiting growth, you instead get and upgrade equipment in its place, and makes characters with good stats but bad growth much better, especially druid who simply gets a minor drawback of getting less points, solved by having a profession that generates favors every 2 days plus knowing. A close contender is shapeshifter with god profession, who is less powerful offense wise but has flexibility still, especially considering they are a bad character to use stat boosting potions compared to others due to their mechanics. But things like bosses are unchanged - they still have great amounts of health, meaning you cannot quickly beat them without having a strong plan in the first place, but its still easier than fighting them unprepared before.
The UI was improved, as it reads better and now highlights interactions that increase your sex skill level cap, ensuring that you will not waste time in the first place. Currently the fish unit is displayed as a maid unit, which suggests that its name was mixed up with an actual future character.
I can say for sure that this update is a strong path to improvement. I haven't experienced the new event yet, but apparently the new alternative ending is linked to it.