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Sorry you had a bad time with the combat, it's difficult to properly teach.  Basically when an enemy has an exclamation point above their head, you should move out of the way, usually to the side.  Then you should attack the air to get them to come into your attack range.  This results in a combat loop that feels somewhat like a dance.

I'll try to make a better tutorial in the future.  Thanks for the feedback, it helps a lot.

Ah ya definitely not intuitive for me.  I wonder if having some other mechanics like a block or parry would make the combat feel like it has more interesting choices rather than you need to 100% dodge to survive long enough to not respawn enemies.  Right now it feels more like punishment then interesting choices and rewarding.  Its definitely a tough thing to balance and get right.