There are a few things that I agree with, and a few things that I disagree with. While organization may seem key at times, and it might seem like one overarching menu system is the solution, in my opinion, it is not.
The quick ring is a great concept but not something I use all the time. I prefer the quick menu buttons on the side, like the map, for example. This is just my preference, but I very much agree with the map quick ring option as well as the map located in the menu button. This would clear up space in the window.
Ive tried reading this as best as I can, and I think the major flaw in this system is that everything is TOO connected. Having everything in one place (the options menu) will only create a messier menu, with less of a cohesive element to it. You don't want to have pages and pages and pages leading to one another, it is much easier to get lost in the menu.
The tap to change for inventory I think is currently the best solution for fast swapping items in the inventory. Keeping the heads, hats, body, shield, etc customization In the player interface is also desired because you can view your character when clicking the back button. I think in the edit->options tab, the status visibility indicators should stay, but the other 'settings' could be moved to a more comprehensive game settings option, in the menu tab.
Now, lets talk about the back button. The back button is typically a core UI element, and should be used as such. It provides a sense of direction for the user and despite what menu you are going to (even if there are multiple 'gateways' to this menu,) you will return to where you were before. The back button should not be removed, as nearly every good UI incorporates it in some useful way.
I guess what i'm trying to say is that there should be separate menus for appearance and in game properties- (character customization, status, profile visibility, hats), and another menu for all game settings. Perhaps make it more intuitive in the sense that all the customization menu items and tabs should be kept behind the profile (clicking the 'edit' button) while all else should be kept in the menu button. There are just my suggestions.