Inventory now saves, the bodies of cannibals don't explode anymore when you hack them, you can now gather equipment after loading a game. If you've been on the fence about this game, this is the time to try out the game. And oh: v0.04 brought in some GARGANTUAN graphics updates!
Here's a 40-minute clip of me playing the game:
This is still alpha of course so there are still bugs but so far they're not game-breaking anymore. Atmosphere breaking maybe but they won't give you a frustrating time.