There are a few similar open source projects, like Tic-80 and Liko-12. Both can be programmed with Lua, but Tic-80 can also be programmed with others like Javascript and Wren and the porting process can be fairly simple.
And arguably Tic-80 is even better than Pico-8 because you aren't limited to using Lua, but can write games in a variety of languages including Javascript and the Lisp-like Fennel.
"Limits" are exactly what makes Pico-8 awesome. I definitely appreciate the changes Tic-80 offers, but Pico-8 and the surrounding community definitely have an x-factor that the "clones" are missing.
At least in TIC-80, the faux retro limits are still there (including the annoying low-res font which is a bit silly -- actual 8-bit computers didn't have fonts that bad). The main thing that it gives you over PICO-8 (besides being free) is the ability to use different languages. I don't think there is anything particularly retro about Lua -- it didn't even exist in the 8-bit era these fantasy consoles are nostalgic for. There's a (paid) fantasy console on steam that uses BASIC, which is at least period faithful.
There's nothing awesome about being artificially hamstrung with the kinds of games you can make. PICO-8's limits are crippling. You are required to perform an absurd amount of hacking which, while of interest to some types, completely bypasses the integrated tools which are supposed to help you make games. It's a fatally schizophrenic tool.
If you've spent time in the community you'll see different types of equally interesting projects. Lots of games that are able to provide you a fair amount of entertainment or some that really push the limits of what you'd _think_ is possible. The constraints really help you with scope creep as well as you have to decide what's important to the game.
Brief selection of some projects things that I personally enjoyed[1]
I remember when the first thing you had to do in order to program a videogame was creating your own TIFF or BMP parser. That's ok if you enjoy that sort of thing, but it gets in the way when what you want is a working videogame, not a tech demo. That kind of limitation, frankly, sucked.
On the other hand nowadays the problem is the opposite: there's so many ways to do stuff. So many options. Which engine. Which language. What graphics pipeline. Which Entity-Component System, etc.
The trouble is that we are back to the previous problem. The tech decisions get in the way of the creative process.
What Pico8 does right is limiting the amount of tech-related decisions you have to make. That frees mental cycles in order to be creative and build something that works. I know from the get go that I've got 8x8 16-color bitmaps, and that's it. No time wasted parsing TIFFs, and also no time wasted choosing tech. You start and go.
All that said, I don't think Pico-8 is for everyone. If you feel restricted by it, perhaps you will be more comfortable with other engines. I program games as a hobby an I am very limited on the amount of time I can dedicate to it. I tend to make small 1-evening prototypes that are never finished. Pico-8 is awesome for that. It's definitely awesome for me, at least.
> What Pico8 does right is limiting the amount of tech-related decisions you have to make.
How is it a tech-related decision if I want to add another sprite, but can't, because PICO-8 decided for me that I'm only allowed to have a specific amount? It's completely arbitrary and literally stops a game's development! That's not what a game development tool is supposed to do!
You are saying it as if it happens suddenly and by surprise. Those limits are presented since you open the tool.
A screwdriver isn't "good" at putting nails down. It would be pointless to say that it's not a good screwdriver because it doesn't drive nails. Pico-8 is like that. It only allows a certain amount of everything: sprites, sounds, colors, even program tokens.
I must point out that it is possible to drive a nail using a screwdriver. You hold the screwdriver from the metal end, and repeatedly hit the nail head with the handle. It's a bit awkward. (But also sort of impressive. Like the people that do 3D stuff with Pico-8).
There are options out there to go around most of the limits if you really want to. You might have to sacrifice something. You need to be creative, the same as with the screwdriver. I actually enjoy that.
It's nice for you then to enjoy, but there is absolutely no reason there couldn't simply be a checkbox for "unlimited stuff" in the thing. If you want to impose artificial limits upon yourself, I'm glad you have that ability. I want to make games, and PICO-8 is shit for that.