This is a really interesting premise that you don't really utilize to it's full potential. Maybe it's a matter of there not being enough time to put into the project, but it felt as if you stripped away the theatre aspect of this game, there won't be any difference. A change to consider would be to implement some sort of audience that responds to the player's action, such as cheering when a blow is delt or groaning when the player gets hit. This would not make sense without the theatre aspect, and thus making the theme fit better with the game.
Ignoring that part, the game is still pretty good. Sure, there were some bugs once I got to the second level, such as walking of the stage, moving the exit further away from me without walking towards it, etc. but the overall experience was still pretty good. The graphics were a part of this project I thought was handled best, as the textures felt coherent and thematically fit each other. Although they are a bit unpolished and could use some clean-up, it was one of the better aspects of the game.