Hey!
Loved your vid! And I apologise about the 'falling out of world' issue you got :( I'll see if I can get that fixed in the new year!
You're right when you said the game spawns the enemy, rather than him roaming around. This is because when I first tried him roaming around, he was always away from the player and the game was kinda boring.. so I thought the spawning mechanic would be better to make it more exciting and also due to the time constraints, but I do agree with you that it is a cheap scaring mechanic... sorry about that!
Thanks a lot for playing :)