This is a known bug and we are looking to fix this asap! Thanks for letting us know - especially how you came about getting this bug. We assume it doesn't happen every time as is seems to be a very specific sequence of steps since we can't reproduce it every time.

Thanks for the details relating to this problem!

We believe the compression issue is specific to android yes after many saves/flattens will cause the image to show more compression artefacts. We are investigating this issues now.

In regards to the image shifting - we are aware of what could be causing this and currently working on a solution - again we believe this is specific to android and due to a rounding error. The shift looks angular also - the reason we say this is because the right side drops down slightly and on the left side there is a matching shift out/upwards  which kind of suggests that there may have been a very slight rotation which may have been exacerbated by compression - but we are investigating.

If any iOS users are experiencing the same thing please feel free to let us know too.

Update: We added arbitrary rotation of overlays on "crop" screen.

Thank you for making us aware of this. We will look to rectify this as soon as possible.

Yes, we will no doubt add the ability to overlay "type" however it will not be for the first release. There are a lot of amazing apps that already overlay custom fonts very well - so for now we recommend using them as part of your creative workflow process. 

In regards to a magic-wand tool, we have already begun discussions about adding this feature for use with Masking but we are still investigating how it will work best. Is masking the area you had in mind for the magic-wand feature?

We have already been working on the ability to rotate arbitrarily during the the crop screen and this will hopefully be integrating into the beta soon after further testing.

We are also looking at allowing the user to adjust the position (as well as rotation once the above is integrated) during the main editing screen too. 

We will look at the possibility of doing the above for the mask shapes as well

Great feature requests! We'll keep you updated.