The "gradual" release pace has sucked, but it's unavoidable with an overhaul like this. Hopefully it won't happen again any time soon. I'd like to get back to releasing once every 1-2 weeks, and faster if I fix any show-stopping bugs. I think everything coming up after this should be easier to manage in smaller packages.
I don't think the new 8 directions really slows down the dwarf mode path-finding, since although they have more options per square, they also get to their destinations in fewer steps for most paths. Probably makes it faster.
I haven't made any changes to how diagonal movement works, but ever since I added traffic designations and the new pathing associated to that, it has been an option. It was not an option before. I'm not sure whether I'll do it or not, since it might make adventure mode feel weird. I'm used to a diagonal move being equivalent to a horizontal move, but I'll probably try out the other system soon. Using the euclidean metric could also slow down distance calculations somewhat, since a couple of multiplies and an add probably compares poorly to a max, though this isn't really a big deal, and most distance calcs in the game don't need to be exact anyway. It could always be an init option as well, especially if the feel of adventure mode is really altered by having expensive diagonal moves.
Yeah, room designations are going to be square, assuming I don't spend any more time changing how that works in general.
Anyway, as I noted in my status report, I have problems with the change as well, but it was forced by the latest alterations. Maintaining two systems between two modes which are supposed to parts of the same game just wasn't working, and now I'll just have to react to that reality.