Ahh I'm not sure what you mean -- by the cliff ending do you mean the cutscene with Iggy getting chased, etc? If so, that's the end of Arc 1, and you just need to watch through the credits to continue.
There is an affection system, yes! Though it doesn't come into play until the final arc, where you'll be able to potentially choose character-specific epilogues for Genzou, Orlam, or Gidget if one of their affection is high enough (it doesn't influence anything before that though).