Today I returned to the project after a year and rewrote the engine once again. This time, I fixed the coordinate problem and made the hybrid movement system much smoother by making it more of a blend where the camera adjusts to the centre automatically. I also scaled the player down, made some small tweaks to the map out of boredom and added some cool parallax. And last but not least, I added mobile controls. Good ones. I'm talking player speed based on distance from finger to centre.
It is nuts that this is just the first day of development and it already looks really good. If only development stays like that...