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The difficulty for the first level is now more what I'd expect.  However, a speed (difficulty) slider would still be appreciated especially due to later levels.  If that's unrealistic, then just consider an unlimited lives option.  Alternatively, maybe a rogue-lite mechanic of some kind would work here.  Right now it's too easy to get increasingly frustrated in a cycle of spawn-die 1 sec later-spawn-die-spawn-die-spawn-die.

Maybe there should be some invincibility window after respawning? It's a classic mechanic in arcade games to think of it.

The ship should be re-spawned in a zone with no monster or danger. There used to be some case when it was not working ( laser beams or flamer ) but it should be fixed now. Do you remember what monster/danger killed you on respawn ?