Hey man, thanks for the comment!
Yea, I agree that there's quite a bit of lag at some points. It comes and goes and I don't know why. Didn't have time to dig into it before the submission period closed, but I will look into it after we're done with the jam.
I also agree there should be more incentive for moving around and killing, but alas, game jam time is limited. Health regens automatically though, that's why I didn't make a drop for it.