Keep in mind that the game was made in only 3 days. While I agree with most of your points we literally just did not have the time to deal with them, the game was uploaded 20 minutes before the jam deadline.
- The teleporting enemies are intended to avoid teleporting on you but they still do occasionally due to an oversight that wasn't noticed until it was too late. There is a build of the game on newgrounds where this is fixed.
- The penalty is that you don't get the parts for clearing rounds. I agree that this makes it easy to trivialize the first few ascensions but later on it's not a viable strategy.
- That was literally the last one implemented and I agree that it's lame it just had to finished.
- The length isn't randomized at all? It's entirely based on how well you did last ascension. I agree that picking the weapons would have been more fun but making that work well was out of our scope.
- The entire point of the time out is that it makes you weaker next round. Larger stages were definitely out of our scope.
The game was a fun weekend (+1 day) project but none of us have any desire to do anything more with it.