I think the level up punch is supposed to mitigate the games difficulty
somewhat, indeed if you start a game it's better to play until you die for
that reason.
just because The Ensign doesn't have the resource management, that doesn't
mean you can run through the game just visiting the notable places, indeed
you need to visit caves regularly for your improved weapons.
I will admit I've not got as far in The Ensign as I would like, indeed a
couple of resources I've not yet found a use for, sinse there is one bit
where thus far I've always died which i'm not sure how to escape, but
annoyingly it's about half an hour into the game.
If I can't work out how to pass that particular section, or at least what
stratogy to use to avoid it I might end up having to e-mail the developer,
but I don't think I'm out of ideas yet.
All the best,
Dark.
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