Nice work.

Would be cool to see these things fixed/improved:
-Sword attack is canceled if you swing right before landing or jumping
-Need to reselect spells in every new screen/room before use and after using a spell once you need to reselect it again
-Accumulated exp is wasted when you finish a dungeon and level up instantly
-A smaller world map, less dead space (if possible it would be nice to be able to enter a village from either side - except for the river town)
-More even experience balancing in the early game with tougher/larger enemies giving a bit more exp
-Faster dialogue text (shows the whole message with one press, removes it with the next)
-More uses for tools and rarely used spells in dungeons
-(more out there) Implement the boomerang or the bow
-Shorten the beeping when low on health - 3-4 times is enough
-(a lot of work) redesign the game to be more non-linear in structure, like Zelda 1
-Make MP drops a bit more common overall, or just early on (for example the statue outside the first palace could drop one, like the later ones do)
-(more out there) Implement manual blocking of enemies moving into you with the shield, by pressing a button combo
-Make it possible to see how much you have left to reach each stat level at will instead of just when you level up
-Maybe switch around some dialogue to make clues harder to miss
-You could also remove the ability to jump attack enemies like the knights in the face to skip the duels, though that's more controversial
-Might also be controversial: remove the knockback when hitting enemies (but not the blocks if possible)
-Might also be controversial: make it hard to bounce past enemies using downthrust
I personally didn't mind the exp stealing enemies that much, maybe it could be an optional feature.