Yo it's coming along fabulously! The upgrade systems would be awesome to see implemented, and I really like the idea of dual managing the two sets of upgrades.
Try not to stress about feeling like you've lost time on things, I always end up scrapping so much work when there's a deadline for something and feeling like it was wasted time, but in retrospect always see how much is learnt from it!
And I agree with RhythmLynx about the immediate casting back into the water, it looks great and is going to help hammer home the sense of urgency to the player.