i read somewhere that it's mostly used in writing (books etc.) And it was used in most of the small stories i have read until now, so i believe it's true. Really difficult... especially after you thought you understood the system of all the other tences, this really puts your feet back on the ground :)
AFAIK the main meanings of "to make" are "to bring into existence by effort" (eg make a career, to make a dress), "to cause someone/something to be in a certain way" (to make him angry), "to cause something" (to make trouble), to agree upon (to make a deal). IMHO the meaning of "fare" in this sentence is "to take a action", which is not expressed by "to make", but rather by "to do".
I have been asking DL for two months how to skip Passato Remoto because it is too irregular. I will not memorize its irregularities and , if exposed, rephrase in another past tense. Another on line Italian Language Course had this to say about Passoto Remoto :
Here’s an exercise on ‘passato remoto’, which I admit to hardly knowing at all.
I scored 7/12 when I tested it – I’m sure you’ll do better!
So why do I hardly know this tense at all, even after seventeen years living in Italy?
It’s partly due to the fact I’m very lazy / busy trying to earn a living (depends who you talk to…)
But also because, except in certain areas in the south of Italy, the use of the passato remoto is largely restricted to written narratives such as novels.
Certainly, in Emilia-Romagna, where I live, it’s never heard.
So, if you read novels, you’ll see a lot of it.
If not, you can more or less ignore it.
You've already learnt over 3000 words (on duo) and your complaining about 56 of them? Just because words are irregular it doesn't mean you can't memorise them. Just because a tense is used less often it is no reason not to teach it, because some is still used in common discourse (whether in writing or on TV, subtitles). I cannot say much about regional speech (yet to travel there) but I heard it's use is more common in the south. (in your location perhaps not)
EDIT: I realise now, most of your comment is quoted but on first reading I didn't notice. This page (https://www.duolingo.com/comment/2591660) shows how to format quotes if you want to make it clearer.
In this phrase the combination is tutto+quello = all that. It is a fixed phrase, which makes the extra combination with 'one' wrong. And you cannot take away 'tutto' here. It refers to what I do, all that I do, an action, not a noun which would be the case when using 'that one'.
http://www.italian-verbs.com/italian-verbs/conjugation.php?id=3925 is a good source for conjugations