Snowstone: [...] Is it too much micro managing in terms of inventory?
Not really. There is an auto-sort button (which isn't very helpful), and, as Matewis said, you can access a permanent 'stash' (if I remember right, only through innkeepers/bartenders). Of course, if you indulge in the typical RPG activity of stealing/looting anything that's not nailed down (which you
can do if you want, as there don't seem to be any consequences for doing so), you might run into some inventory problems; but it's really not meant to be that kind of game. I would suggest moderation -- for example, don't steal every single thing you find in every peasant's home you visit, but by all means loot any enemies/monsters you kill, and any "dungeons" you visit.
I should note one major thing: you can't carry weapons in your normal inventory, only in dedicated weapon slots. As you only have three or four of those, it effectively means it's pointless to kill lots of human opponents for their weapons, since you'll only be able to carry two or three extra (besides your own weapon(s)), and any weapons left lying on the ground when you go off to sell stuff WON'T still be there when you come back. So it's really not a loot-gathering/sorting/hoarding type of game like
The Elder Scrolls titles (or a lot of other ARPGs). The focus here is on story, character and atmosphere.