So many times this.
Although, most diamond, gold or stone tools make no sense either.
I've long contemplated how to re-balance the start-game to focus on flint and wooden tools, work up to iron tools, and then make the gold/diamond tiers more of an improvement of iron tools.
Yeah, I think this is sort of what GT does now if you play it in its default Hardmode. Removes all the wood and stone tools and forces you to use flint tools, and then into the bronze and Iron.
It would make most sense IMO that you could only make wooden stuff like a Hoe, Shovel(slowly dig dirt and gravel), Axe(cannot chop wood, but can chop leaves and plants faster than by hand. Also deals low damage). (You could also make a Bone tool tier at this level I suppose). This is actually possible in RL.
Then you can find Flint to make Flint tools to break rock and soft metals(tin and copper probably). You can have a stone tier(cobble) of the Wooden tools, but there should not be a pickaxe as that doesn't make sense. With the tin and copper you can then make Bronze tools. This allows you to mine harder ores like iron etc. and then progress further.
You could even add Bog Iron ore(think Iron Ore gravel) as rare spawns to certain Biomes(swamp?) to allow you to get tiny bits of Iron early on before you got the tools to mine it. But it should be extremely scarce ofc.
I am not sure I got this completely right corresponding to RL, but this would make a lot more sense compared to how humans invented/discovered tools throughout history.
(and yes it is just a game, but I just love it when people can actually learn something while having fun. So why does it absolutely have to be incorrect?)