Wow, thanks for the detailed response! I really appreciate it.
That's funny, I had never thought it would be deadly (unless the PCs decided to antagonize the tougher NPCs which is always an option). Yes, the backgrounds are going in the normal release rather than the jam release. The bullet layout has been retained. I hope it will help the GM run the dungeon basically straight out of the book rather than having to make their own notes. And the audience mechanics are in the works now. The idea is to give them some clocks that fill up when they get bored with bad things happening (e.g., flooding rooms, releasing monsters from the kennel) when those clocks fill. Also, I'll include some example audience heckling.
Again, thank you so much for the feedback. Let me know if I can return the favor.