Hey there, glad to hear you're enjoying it.
I'll give a few responses here:
1, Pace of engagement, I think I see what the problem here might be... too many enemies that just dont really "activate" until you get close to them. I hadnt really thought about that bit too much but now that you mention it that might be something that could do with some looking at. But you're right, there's alot of enemies with activation ranges right now. I'll try to keep that in mind when designing more.
2, I agree, the backgrounds and such look really good! I think the artists are doing a very good job with the game and those backgrounds and the aesthetics they create are my favorite part so far.
3, Analog control is indeed very much a work in progress. The general funkiness of it is a known issue. It'll get fixed up, likely sooner rather than later. Arcen has always been really good at getting the controls done right for their games. Also I'm told that a "slowdown" button has now been added to the upcoming version (havent messed with it yet myself). It's a concept seen in alot of shmups, usually bullet-hell ones, and as this game has ended up with quite a few bullets, it should be very useful. Of course, proper analog will also help alot for players that want to use that since analog control is typically good at controlling speed in most games. I cant say anything about the Steam controller specifically though. I really need to get one of those and try it out; I use a PS4 controller myself and play with the d-pad and face buttons. Cant do analog worth a crap in most games, never really could.
4, The hitbox for the player's ship is likely getting shrunk soon. I think it's much too big and certain bosses in particular (as well as more cramped room areas) are just proving the need for it. It wont be as small as a true bullet-hell game, but even traditional shmups (or even something like Binding of Isaac) typically have hitboxes that are quite small. Right now I think this one is a little too large. But I do think the slowdown button will help alot too, for when you want to make smaller movements. Though, chances are you'll also just get naturally better over time as you learn to deal with the patterns. One other thing to keep in mind though: MOST of the enemies are not gated by difficulty or floor level. So, enemies that might end up being late-game only are right now appearing even on floor 1. There's only a couple of exceptions, with enemies that are bonkers enough that they just NEEDED to be set to higher floors only even during testing. I give no apologies for the difficulty of those particular foes, this being because I find it amusing. Some are in need of a bit of balancing though, so they'll be getting tweaks as soon as I decide just what to do with them. Some of them should be changed in the next update.
Some of the bosses are also a bit unbalanced right now; right now the Mirror boss in particular might be a bit of a terror. It just got a change (it was WAY too easy before) and I may have gone a bit overboard... but I want to see what happens when players get to fight it before I make any alterations.
Anyway, thanks for the feedback! It helps alot.