Without progression between fights this wont have the depth and 'Grand Adventure Journey' feel of something like StS.
And I get why you don't have progression between fights because the main 'combat' is already a sort of abstracted progression. But it's lame and immersion breaking that my character inexplicably loses all their exp and gear upgrades after every encounter.
I think the game would be better if we didn't reset after every 'encounter', and instead it just played as one long super encounter. This would require a lot of rebalancing.