Read ECO cover to cover...
Chess improvement

Read "My system" and play long games tournaments. With 1 or 2 hrs/day you will need several month to read it and understand it well so don't bother if you don't see the results after 2 weeks.
This is almost the only way to progress.

Positional play is typically the wall at that level. Learn how to target weak squares and pawns better, learn bishop vs. knight and their strengths and weaknesses, bishop without a counterpart, basic endgames (you mastered triangulation and opposition in class D so now work on things like widening the beach head), that bishops defend weak squares, trading off their most dangerous attacking piece (a defensive technique), and yes I'll second My System.
Study positional chess and endgames (and still do basic tactical drill warm ups for a few minutes).

Reading books will help your reading skill. Play chess with stronger people to get better at chess.
Then you always lose, and you don't know how because you don't know anything about chess. Your opponent positionally outplay you, and you don't understand why you lose because you don't understand positional chess. Studying books is essential in chess development.
How can I improve from the level I'm on? Roughly a 1450 OTB player to the next level?
I can't devote a lot of time to chess. Roughly 1-2 hrs a day.
Winning Chess by Chernev
http://www.uscfsales.com/winning-chess-new-edition.html
Great book to get stronger at Tactics
1000 Best Short Games of Chess
http://www.uscfsales.com/1000-best-short-games-of-chess.html
Go over the minature every day with a chess clock and board time yourself the games are short so you go over a number of them fairly quickly and internalize the patterns.
1000 Winning Chess Combinations
http://www.amazon.com/1001-Winning-Chess-Sacrifices-Combinations/dp/0879801115/ref=pd_sim_b_3
Solve problems through your minds eye without moving the pieces on a set or a computer at least 35 minutes a day.

Reading books will help your reading skill. Play chess with stronger people to get better at chess.
Then you always lose, and you don't know how because you don't know anything about chess. Your opponent positionally outplay you, and you don't understand why you lose because you don't understand positional chess. Studying books is essential in chess development.
Ask for advice after the game, and analyze a bit by yourself.
Orange's advice is very sound.

You are suggesting the OP that he can get better at chess without actually STUDYING chess. With practice you can reach maybe 1600, but not more than that. You suggest just to play to improve. Then he plays a rook ending, which is theorically won, but he drew it, because he haven't studied endgames.
Learn chess tactics. Without it you will not improve. Solve puzzle. That is one how you can improve your calculations.

You are suggesting the OP that he can get better at chess without actually STUDYING chess. With practice you can reach maybe 1600, but not more than that. You suggest just to play to improve. Then he plays a rook ending, which is theorically won, but he drew it, because he haven't studied endgames.
Just out of curiosity: how much experience do you have reaching 1600?
I played 1600s who play chess for like 2-3 years and are stuck at that rating. They have played lots of games, but their level is still 1600, so studying is required. I know a kid who has played chess for 4 years, he couldn't win a won K+P vs K, and he is around 1400

Tell those 1600s to study planning and calculate more thoroughly. Strategy and positional knowledge is oftentimes confused. They aren't the same but are related, tactics are also related to strategy too such as sacrificing a pawn to improve your king position in an endgame, sacrifice a pawn to take squares away from an opponent's knight (as their own pawn would occupy it), opening lines for bishops and/or rooks, etc.

Anyone who has ever been in a real chess club or played in rated OTB tournaments is familiar with the sight of people who have devoted a great deal of study to the game being beaten by young kids who wouldn't know a Philidor position from a minority attack--but they can play chess!
Who knows if they have coaches teaching them? Plus every single titled player studied a lot to reach that level, I don't understand why "normal" people shouldn't study.

Both are good, but saying that just by playing you can get better, it's a bit arrogant, since every titled player studied a lot before reaching that level. Fischer said that he studied lots of chess book and games. Was he stupid?

Xeelfiar wrote:
Both are good, but saying that just by playing you can get better, it's a bit arrogant, since every titled player studied a lot before reaching that level. Fischer said that he studied lots of chess book and games. Was he stupid?
Nobody says you shouldn't study. It's just that playing and analyzing is (much) more important.

Dan Heisman tells a story of how he lost an important game in the Pennsylvania Junior Championship because he didn't know the Philidor drawing idea. But the real moral of the story was that he had reached a rating of over 1900 while still a teenager, mostly by playing and going over his games afterwards. Most adults never get within shouting distance of USCF 1900
I read the same story... from Arne Moll:
" I played actively first, then too passive, then I lost a pawn, and then it was all over. After I resigned, nobody stood by the board to analyse with us. My opponent patiently explained to me that I could have held a draw with the so-called Philidor position. I had no idea what he was talking about. In all those years in the Max Euwe Center studying Philidor's opening ideas, I'd never bothered to look at Philidor's famous rook endings. I had studied the wrong Philidor."
http://www.chessvibes.com/columns/the-wrong-philidor

Xeelfiar wrote:
Both are good, but saying that just by playing you can get better, it's a bit arrogant, since every titled player studied a lot before reaching that level. Fischer said that he studied lots of chess book and games. Was he stupid?
Nobody says you shouldn't study. It's just that playing and analyzing is (much) more important.
I agree but for some reason, I very seldom analyze my losses. I guess I find it boring especially versus playing or studying. I know I am missing an opportunity to improve. Two questions: first, what ratio of your time is spent analyzing, studying and playing; second, from anyone that has found analyzing their games tedious or boring, how have you got around that.
Thanks for any feedback.
How can I improve from the level I'm on? Roughly a 1450 OTB player to the next level?
I can't devote a lot of time to chess. Roughly 1-2 hrs a day.