Pretty interesting mechanics. I haven't played the game you cited as the inspiration yet so to me this feels like an novel way of doing health boost. I could see this having a visual upgrade where different parts of a ship fits together, not just block to make cool ships on the fly.
The little health bar on the individual blocks can be hard to see, so i would have like it if there's some other visual ways of showing the block's health directly on them like changing their colors etc.
I saw that there were a music and sound menu in the main screen but there wasn't any sounds when I played the game. Is it just me or the game lacks sounds?