Title says it all, the setting for item use toggle (Gameplay-Reduce Hold to Use Item) needs to get separated for a weapon specific and item specific setting.
It would be nice to be able to have a hold down aim for weapons, while being able to press a button to hold out items, or use them.
I can think of zero reasons that these two settings should be melded together, as it is useful to not have to hold down items such as instruments, quests, lanterns, etc. but it is useful to have hold to aim for a weapon.
An extra side note is that the setting needs to be named properly. Having a setting called "Reduce Hold to Use Item" does not properly represent what the setting actually does (granted the description does, but who reads that?). I would suggest renaming it to something along the lines of "Item Use Toggle" or "Hold to Use Item". The Reduce portion of the setting is misleading as it does not reduce anything, and instead changes how item interactions work from a hold to use (off) to a toggle to use (on)
