I’m not sure if you should be so critical, because in terms of gameplay time and composition, I think you were the best. It wasn’t my favorite game (since preference has nothing to do with quality), but yours was one of the two that received five stars in every category. Given the time and limitations, it offers a lot: a rich world, well-built mechanics, engaging characters, and an interesting, varied, and even balanced level design, considering the relationship between Lost Souls and progression. The time I spent grinding was because the game gave me good reasons to do so.
Besides that, I liked Crestfallen so much that I was surprised your game wasn’t named after it. I found it more impactful than Lost Soul in terms of lore. Still, Lost Soul makes sense, as anyone searching for Dark Souls-related content will inevitably use 'Souls' as a tag at some point and end up finding your game.
You have something truly great in your hands. Don’t be too bitter about your creation because of certain limitations—you achieved all of this despite them. Having a game with 2 to 3 hours of meaningful content (my save was 2 hours and 42 minutes) and a dynamic exploration system is a major accomplishment, and I’m sure you know that.
You poured a lot of your soul into this, and your game is satisfying in part because you dedicated yourself to invisible details, like the SP mechanics and asymmetric progression. If you keep hammering away at your own creation too much, you might end up forgetting why you loved it in the first place. Don't let that happen. (+ I just received on my feed that Crimson Ribbon is out for download, nothing to do with my comment, but I'm very excited to see your artistic evolution.)