Please don’t make every click a history state. This can make it very tedious/error prone to undo a simple change because there happened to be 7 clicks in between.
Also, please name the last action in the Undo item in the Edit menu so I have confidence I’m undoing the right thing or that I even did the action I thought I did.
Finally, please addd an undo history panel separate from the version history panel to make it easier to jump back with precision.
The undo history in Figma is pretty weak. My dream would be an unlimited undo history that is available between sessions. I could close Figma, and re-open it, and my undos would still be available. I could step back a file all the way to it’s brand-new blank state even if it’s a 3-year-old file with millions of actions.
At a minimum just increase the undo history by like 10x and I’d probably be happy. But the eternal undo history would be MONEY.
In addition the excellent points raised by OP, I would also like to have a better way to visualize what has been undone. On a large canvas, sometimes I find myself pressing Cmd+Z until I finally see something happen. It should be easier to see what is being undone.