This game is on a good track. It accomplishes most of the things that a schmup has. It has a nice atmosphere too.
In a gameplay perspective I think there are some points that, shall they be improved, would make for an awesome package.
- Enemies always shoot at you, but giving them custom shooting patters (other that the bullets that explode and spread) would give them more personnality and also a chance to the player to show his expertise.
- Rather than giving the player all the weapons at the start, you could make them appear as power ups.
- No healing + unforgiving enemies make for a time limited rather than a skill-limited experience. By increasing player ship responsiveness and giving enemy ships attack patterns you will make the player feel he is in control.
Keep up the good work!