I like the presentation, although it's a shame that the characters are so small. I can tell you wanted a bigger arena and so opted for the smaller characters, but maybe zooming in a bit and making the characters a little bigger will help players to see and appreciate who the player is controlling and fighting, and better identify traps.
Your own bullets killing you is interesting, but it does hurt the game play as it does make me overly hesitant to fire, and thus get overrun by enemies. One way you can empower the player is remove the cool down period of the shield, allowing players to strategize and use the shield to ricochet your bullet and others, upping the tension and frenzy. You could also just make it a normal shooter, but I think that is not your aim.
Either way, I hope you find a solution that will stick!