Wow, an amazing wall of feedback, evolvent! I can tell that you've played both version 1.1 and version 1.3 a whole lot!
I will need some time to digest everything that's in here, but my initial reaction is that I see where you're coming from.
On v1.1 I could quite consistently beat the game myself too (well, I'm impressed that you beat it with the archer!), while in v1.3 it has become a lot harder, and also one seems to be forced to bate enemies into these lines as one flees away, unable to gather gems at the rate that would be needed to keep up with the power curve.
You definitely touch on a lot of balancing issues, and it's to be expected. I really want to expand the game beyond the initial 1.1 version, and for that I have to experiment with it, and in the process risk that some versions are much harder (or much easier) as we stabilize the formula and find what works and what doesn't. To get there, feedback like this is priceless!
Awesome ideas on the hammer. I've been thinking of ways to improve it myself, and these were some good ones!
I really want the buffs and debuffs in there to make each choice of character more than just a different starting ability, but it adds complexity to the formula that will need some time to stabilize, and with that added complexity, more item variation is probably needed to add a wider possibility space as one seeks to beat the power curve.
There was a lot of detail in this post of yours, so please give me some time to digest it over a couple more reads, and I'll see what can make it into v1.4, or a later version.
Keep the feedback coming, and I think we can turn this into a pretty amazing game! I want the game to be hard, but I also want it to hit the good notes when XP trickles in and enemies fall in the dozens around you. It's supposed to be a dopamine rush of a game, with high replay value and where getting consistent wins require mastery, but it should be more than just running away while going pew pew with the spark and boom boom with the fireball until the last boss falls.
So, we've got some work to do!