This is really nice! Very chunky characters, very cute! I read your devblog and think that it has very clearly conveyed itself into this proof-of-concept.
If you're still working on this, maybe adding the unit's unique abilities would be next? Although it might be easier to implement the economy and building units with bases. I don't remember if in wargroove there was the ability to combine damaged units, but I know it was in Advance Wars.
All in all, it feels great! The animations look smooth and it plays really well.