Very nice! Tons of well executed polish in here. Would've liked a life meter and more levels, but this is a great prototype
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If people are permitted to use Unity, you shouldn't feel any guilt about using your own engine. But if you're even asking the question, perhaps you'd get more satisfaction building completely from scratch? Suit yourself, and don't worry about the rules as much as your own personal goals!
You might want to re read the rules about the limitations for this jam, it isn't about the assets being low res, its about the game itself being low res, ie the smallest distance something can move is 1/64th of the game screen. Good start for a game, but it isnt really in the spirit of the jam unless you address this