This post is super WIP. Information is incomplete and images are still being edited.

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The Little Hammer is the opposite of the Little Chisel. Instead of placing tiles, the hammer removes them.

Open the Little Hammer GUI by right clicking:

The top box is the selector that changes the function of the hammer. The bottom box is the size selector.

Functions:

Cube - Cuts a fixed cube shape from a block or structure. The size of the cube can be changed in the bottom box.

Bar - Cuts a rectangular shape from the direction your cursor faces. The bar is always 16 tiles long (1 block) but the width is configurable.

Plane - Cuts a flat plane in the direction of your cursor. Length and width are 16 tiles, but the depth is configurable.

Dragbox - Cuts a cuboid where each dimension is drawn by the cursor. Left click to start a point, left click again at the desired position to delete tiles in the area of the ghost. The cuboid can also be configured to be hollow with the option to set the depth of the sides.

Dragsphere - Like the dragbox, but spherical. Left click to begin a point, left click again to complete the cut at the desired position. Can be configured to be hollow and set the depth of the walls.

Dragcylinder - Cuts a cylindrical shape. Can be configured to be hollow, set the depth of the walls, and the direction of the cylinder face in either X, Y, or Z ( East/West, Up/Down, North/South)

Dragwall - Cuts a wall from point to point. With the depth of the wall and its direction being configurable.

Dragline - Cuts a single tile thick line from point to point.

Dragslice - Cuts a diagonal slice from point to point.