I think the biggest criticism is the pricing, not the existence of the cash shop. It is using the Apple model versus the Walmart model of pricing targeting the whales which is probably more profitable. Like you said, it does not impede gameplay at all though it is always somewhat concerning to see such an emphasis on a cash shop for a product that is still in beta. I will continue to play and see how it goes.

I think the issues lies with their mindset being too focused on money now instead of later. It's in open beta and they have shown so far that most of their development time since launch has been spent making paid outfits and pets instead of building the fundamental game into being great enough to warrant spending money in valid areas. Features like unlockable clothings should be added before they pump an open beta up with even more paid cosmetics.

It's terrifying because a bad monetization model WILL kill a game, that can't be understated. Many players actively want to support the game, both myself and the previous commenter want a reasonable option to spend $15~$20 a month with pleasure, but instead Palia devs want at minimum a lump sum of $20 for an outfit, the average one time payment for one of this games competitors like Stardew Valley, My Time At Sandrock, Dinkum, etc.