Come on people some of you really need to grow a sense of humor. Somehow I doubt they consider our dog petting and bedwarming habits the pinnacle of feedback collection.
So what did the update do? Made the game PLAYABLE for many people that (like you) paid to (you guessed it) PLAY it - if that's not top priority (or shouldn't be), I don't know what is. Furthermore they fixed some issues for multiplayer again to make it playable. I'd bet there's separate teams working on graphics that were going to polish the cinematics and the models no matter what, so why not release some as they go.
As for the content, that's certainly a bigger issue and can't or shouldn't be undertaken lightly as it will invariably trigger a domino effect.
You are also conveniently forgetting that the vocal few on these forums do not represent the whole community nor target demographics - it pains me to say but there's Steam forums (eugh), reddit and so on and while you (or me) might be of different opinions those matter to Larian as well (as they want to you know SELL the game - or are many of you going to work just for a pat on the back?).
So while you (or me) think combat for example could be more challenging in places, there's still a lot of people (even on these forums - look at help section) who struggle as is. Now should they cater to minority or make it enjoyable for everyone?
And you know as well as I do that some people here will never be satisfied no matter what they end up doing.
So for me the update read: here guys we tried to make the game playable for everyone, hope it works. We are very glad you're mostly enjoying the game and will continue to do our best. Have some cookies. Ok I'll admit shortcomings of the evil route should have been addressed somewhere in that context.