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Mod Version:
1.0.0

Forge Version:
14.23.4.2759

This issue occurs on the lastest version of Forge? (Y/N):
Y

What happens:
It seems the spikes destroy items as well as kill mobs. Is that intended? Seems like it would make them kind of useless for mob farming.

Yes this is intended. There are ways of them not destroying drops, you just have to get a little bit creative. (Try putting them on the ceiling).