I have noticed a severe reduction in QoL any time I spec 0 or little into encumberance, and nearly (or literally) infinite carry capacity when specced highly into it. This variance is not nearly as stark with the other stats (grit increases stamina by measly 3). I think the solution is an increase in base carry weight, and possibly a small reduction to the carry weight buff from encumberance points. It’s a little dumb at level 60 to have 70% of your capacity taken by just your equipped armor and hotbar tools.
In reality, could you carry 600 stone?
500 wood?
15 Foundation blocks in your …loincloth?
If you answered no to any of the above, then be grateful you can carry anything like this in game