Impossible? Nah, just VERY PAINFUL
I made it to level 3, but I agree strongly with the point you make about level 2. Now to explain why level 2 is so painful at greater lengths than this flash did!
You run through an endless swarm of ghosts flying out of many a window of the buildings along the street. Reaching the large building, this building's irritating denizens come out to say hi.
You must climb the few floors this building has, while both avoiding ranged attacks from those that are above, AND trying to fend off those which greet you in person. The ladders TAKE FOREVER TO CLIMB. All you can do is move up and down. What makes this so bad? All the while that you climb, these things run straight over to the top and bottom of this ladder, hurting you if you go back down, attacking from above, AND most annoying, NEEDING to be shoved through to get above so you might proceed. Oh, did I forget about the periodic crow visit?
Well, after all of this torture climbing this place, you have to go DOWN THE OTHER SIDE. You're VERY lucky just to have gotten UP the place, but going down again....
Level 3.... Blue towers, few places to step, a pit below it all, and an endless ghost stream. Only way to get any farther is likely through an emulator, and even then.... Good luck you persistant sadist! 8)