Random thought.
The game could get really surreal if you take the way the first level progresses into a very similar second level and expand on that. It looked like the current thing was two separate iterations of the same level at various points in its design, but something that really messes with the player in that vein could be a viable direction to take should you so choose.
Structurally the game is sound, the music and art competent. The first level doesn't really need you to use the tools you are given, but they were identifiable and distinguishable.