Thanks bud, means a lot :)
1. Indeed, pixelise shaders have always seen a bit odd to me as if you have an inbuilt scale function for the screen/framebuffer why bother?! (I suppose the answer is I'm lazy)
2. Each character mesh is split into each body part and has a mesh for each level of damage. The relevant damage version of a body part is simply shown/hidden as necessary. I originally wanted to implement this by swapping the mesh resource in the instance, but Godot doesn't allow for this.
Yeah, sounds could be quieter. I was going for the over-the-top distortion, low-fi arcade sound effects. As with all my games I experiment with things which leads to inconsistencies with various aspects.