"You stack initiative? that's an exploit"
-> That is build decision.
"You kill a merchant? That's an exploit"
-> That is hardly something you would do in real, and if soon there would be hardly anyone left to trade with you. The exploit here is, that there are hardly any drawbacks.
"You shoot before waiting for the combat to start? exploit!"
-> This is just tactics, and will be 'punished' with delay on the second turn, if attacking from sneaking after the first attack. Exploit would be keeping the leader trapped in talk, while killing is team.
"You... BUFFED BEFORE BATTLING?! Exploit!"
-> Buffing before first strike is tactic aswell, but I don't like the fact that you can get your whole team 'rested' buffed just by one click using a bedroll, but for me its less an exploit and more a design flaw. Using other buffs normally means, they last less longer, because time runs faster outside of battle.
I totally agree to that.
Pre buffing, stat distribution and attacking somebody first is fine. Killing people to sell stuff several times and being rested before every fight not so much.
I also agree that it feels strange that every second prisoner on this island is a merchant.
From a role playing point of view, it would make sense if we meet somebody in the wilderness who sells random things that are stranded on the beach or traded with other prisoners. (a few random skill books from several schools, some random equipment and some items for every day life like food, drinks and tools). There might be a hidden black market where you can buy useful things for a really high prize.
Most normal prisoners should have very little things, and if they have something useful they are unwilling to give it to you unless you do something for them.
Prof. Dr. Dr. Mad S. Tist 
