Alrighty. I've gotten to Lvl 23 without dying, and now learning of some kind of permadeath, I'm very glad I did.
Basically, guys, all you have to do is pour all your upgrades into attack. Don't recollect the magics once you get Chaos. And for the love of all that is holy, if you see something with Magic Proc on it, drop ANYTHING and put that on. Proc is absolutely devastating. I walk into a room in the Demon Dungeon filled with monsters and suddenly they all disappear. The Red Armor "Sorcerer's Shoes" is your best bet. Gives movement speed and 18 Proc.
I feel like I'm writing a walkthrough. Anywho, this is an incredibly lovely game, though there should be some kind of saving system that INFORMS you that you've saved. The level-to-level freezing is a bit annoying, and this permanent death sounds very unpleasant. So those could use a bit of re-hauling.
But this is an incredibly entertaining game, and I plan on playing it until I get the most powerful armor. Which begs the question, is there something after the Light Blue?
Oh, and if you think you might die, just go back and forth between two rooms you've beaten and feed on the Fiends' health potions. They are there for a reason.