This is really charming! I like the way the HUD virus and the satellites kind of push you into each other to make it more likely you'll get to see the effects naturally. I love the ship design sprite, it's a got a great silhouette and the blaster animation is very fun!
I think hitboxes could benefit from some adjustment. The bomb hitboxes definitely linger a little long also, I think they really only need to be active during the flash. Personally, I would also shrink the player's hurtbox to be fully contained within the sprite so that bullets don't hit you when they look like they missed.
It would make dodging bullets easier most certainly, but I already like how the enemy and bullet patterns aren't particularly challenging unless you're dealing with a debuff. So leaning into that by making the debuffs harder to avoid, and the bullets easier to avoid might be an interesting route to take if you're planning more in the future. Plus the debuffs are more fun to look at.
I do think the gun debuff is mostly just annoying compared to the others, which are a fun challenge. A debuff that makes your hurtbox bigger by adding "wool" to your ship could be interesting though. Maybe even accompanied with a temporary sheep TF on Scott's portrait for a fun visual!