Been fleshing out the combat some more. I added a new damage type, Siege Damage, in anticipation of adding siege weaponry such as the above catapult. Catapults (or whatever types of siege machinery I eventually end up with) will be craftable minions that can be summoned onto the battlefield using Kits that you can craft from found materials. They will be useful in later stages of the game, when the rival wizards that you must defeat to obtain materials and magic will be entrenched in fortified bases.
Siege Damage is effective against walls and barricades, but less effective against monsters/NPCs/etc... Of course, there are other types of turrets and magical machines that will be good for mowing down hordes of enemies.
In other news, I've stripped out the old UI system. I've retained the graphics, but I am reworking how the UI works from the ground up. As the UIs got more and more complicated they were getting slower and slower. Most of the underlying code was pretty quick proto stuff, so I've stripped it and am working on a batching system that collects all UI elements into render batches.
I am also in the process of re-thinking shadows. Currently, I have just been using a soft blended fuzzy black disk for shadows, but I am kind of toying with the idea of rendering shadow layers for each sprite. So if the above shot looks odd without the shadows, I've got them disabled right now. I'm still not entirely sure I want to re-render the sprites with shadows, though, especially since it complicates the pipeline a little bit.