its a paint / lacquer chip , so unless the frame is made of bone china keep calm & carry on

i find the earlier talk of “drilling out”  more worrying than the actual damage though….

Been using 1 x 8 / 9 for the last 10 years with no probs  although i’m still using an older 26″ bike, my mildly hilly location doesnt require a huge cassette out back so 11-34T is just fine.

very long lasting and forgiving to run in my exp.

and with kmc chains and alivio spec cassettes available for not much more than £15 a piece its cheap as chips.

although the box comp. gear posted above is clearly on the pricey side.

re brake overheat – quick rub down of rotor & pads with sandpaper should remove most of the glazing.

couldnt find much in the background to critique sadly  :-)

What size rotors are fitted?

any brake set up can struggle if they are say only 160mm for a potentially big 29er bike + large rider.

i also prefer early outright power over progressive / modulation so i buy shimano

half inch of lever travel on my slx’s and i’ve stopped.

The first upgrades I always consider are pedals , handgrips & tyres , even on pricey bikes they can be a bit pony , as its an easy place for manufacturers  to cut costs while they dazzle you with the XT mech & fox shock etc..

often improves comfort and control no end