Great experience. Very 'oldschool hori' where memorization and execution came with dedicated practice. Laser was my favorite weapon and I liked that bursting the powerup matched yours. Would have liked if bursting swapped a powerup to another type if it already matches your current loadout. There were times when I was getting only normal shot and wanted laser. If there will be more weapons you could make a bursted powerup bounce to mid screen before coming back left. This would give more opportunity to grab it but also to cycle through types until getting the one you want. Make the ship sprite the hitbox for powerups and keep the cockpit for collisions. Would alleviate the issue of overshooting an upgrade in the heat of battle.
For what it is going for you delivered on the difficulty. Maybe add an easier option but don't shy away from going harder as well. This is the kind of game that gets a dedicated fanbase competing for leaderboard and easier settings can be for everyone else. Keep it up!