As to the point of the original post:

Setting a specific level for base stamina and health which cannot be permanently raised is a basic design decision. One may not agree with if. One may consider it stupid. One may protest it.

If one is to play the game "Valheim," one must also accept that one will have to deal with it as it exists.

As to the idea that "To be fair they need to just add options so people can play however they want. I'm just glad mods exist:":

What would be the point? To quote Oxford Languages, a game is "a form of play or sport, especially a competitive one played according to rules and decided by skill, strength, or luck."

The role of a game designer is to provide the rules and the means (skill, strength, luck or whatever) required to win the game. The role of a game player is to play by those rules and means.

If one wants to be a game designer rather than a game player then one should learn the skills required or pay someone else who has those skills to design a game to one's specifications. I am fairly certain it will cost more than the pittance one pays Iron Gate Studio for a license to play its game.