First off, let me say this is a great improvement from your first game in this series.
Game play wise, I love that you have condensed the random spawn 'creeps' into one upgrade. It is much more gratifying to know you are upgrading them as a whole and not just one you like. Also your blacksmith metal system I enjoy, the daily wheel I do prefer over a log on 4 - 5 days in a row to make sure you get the best prize. It gives players a chance to log on or play whenever and feel like they get a prize, with a chance of getting a gold bar. The mini games or challenges are also a welcome improvement, they add great diversity to the normal game play. While adding bonus that players would want to gain.
Music wise, when the geek/nerd is walking back I was mildly hoping for a new song but not really that big of a deal. It does fit him for walking back and sets the mood of who your hitting.
Item wise, I love that you added spider items, I have always been a fan of the RNG. It is great in my opinion to be able to get a upgrade randomly. Also with the blacksmith being able to level up based on how many bars he has used is a great long term drive. The fact that you can buy them with real money or with a ton of in game currency is a great hats off to ya.
To end, I am so glad you made a second and shared it to newgrounds. I hope you are working on a third and will share that with us also.