Thanks for trying the demo.
I'm not married to the battle theme myself, but I haven't gotten around to changing it.
Knowing that players are having difficulties with the first battle is valuable feedback. I believe the player should suffer whenever there's combat but frustrating people too much risks alienating them. It's a difficult balance.
Anyway, there is a way to beat it if you are curious for next time, but it involves exploring the level and talking to all the NPCs scattered around before picking up the stick.