We couldn't get past the room in the second screenshot (the U shaped water area) due to the terror of the ghost. It took a bit to realize that the bow can hit the ghost, so for a couple of play throughs we just avoided picking up the Shield and the Bow to stick with the more effective, predictable Sword. The Shield seems to make you immune to the moving block enemies, but it's a bit difficult to tell.
The movement felt enjoyably silly and slippery, and mostly felt like the presentation of the game was on point. It just seems that the rotation of the items, mixed with how hard it is to hit the quickly flying ghost, is too much for these ratties to handle. It was an enjoyable dungeon romp, tho!