This game isn't easy — or at least, it's a fair bit harder than I first realized. The loss of progress upon defeat is indeed a design choice meant to keep the stakes high, but I can see how it could be frustrating. I've sprinkled a few easier substages here and there for that reason, but Stage 4 has a few mean ones in there. Either way, I'm glad you enjoyed the sights and sounds regardless!
Oh, and trying to beat this game on a trackpad would border on masochism, so I definitely recommend trying again later with a mouse!