Players currently have 2 options for the in-game HUD: Enabled and disabled (if you ignore the "Show Quickslots" setting).

What I, and presumably many others, would like to see, would be a setting that's halfway between the two - a mode in which only HUD overlay items for worldspace objects, or interactive prompt type things, like the crafting menu, would be shown, but the "static" HUD (health, temperature, stamina, etc.) would be hidden.

This proposed option would provide (in my personal view) the best of both worlds: Increased immersion due to HUD-less gameplay (something the content creator community also likes to do on streams and videos) without the constant annoyance of accidentally crafting wooden fishing hooks instead of crossbow bolts or turning a raincoat into rags instead of armbands.

I have doctored some screenshots with three example cases to hopefully get my idea across.

Example 1

Current look with HUD "on":

Current look with HUD "off":

Suggested look with HUD "interactive only":

Example 2

Current look with HUD "on":

Current look with HUD "off":

Suggested look with HUD "interactive only":

Example 3

Current look with HUD "on":

Current look with HUD "off":

Suggested look with HUD "interactive only":