I think maybe the three lives before the continue screen might be a good idea, like in the original game?
I have been thinking of adding save points before dungeons or hidden in dungeons. I will also think about what you said that might also come true depends on if I make things easier in the balancing update later in development near the end. But yeah continues dont sound bad but they would then have to have the penalty of gold and maybe heart lost (maybe not all but I was thinking of 1/3 and in NG+ maybe 1/2).