Tips for new players:
1) Pick 1-2 unit types and focus on upgrading them to max level before you worry about the others.
2) Use your abilities early and use them often to help preserve your strength for later in the level.
3) Don't waste all of your money upgrading settlements early on. Later you can afford to raise them all to 5 without trouble.
4) Tax a lot! In my experience, you can tax up to 19 times without much worry, but 20 is too much and likely to cause a revolt.
Apparently we're going to be able to see how many angels we've murdered as a stat. Which means there is only one logical conclusion: Selling Angel Souls to even further increase profits!
Enemies should definitely come at a steady pace, rather than spawning every time you kill one. As-is, the best strategy is to simply build everything next to the spawn and simply farm low-level stuff that you can kill right away. With a steady spawn, you're rewarded more for having a good tower layout, since the only way to get more money is to spawn tougher enemies.
I have to say that the graphics are the main issue I have with this game. Not because they're bad, but because they don't serve the gameplay very well. The grainy and detailed pixel graphics are good for slow-moving games, but a fast twitch-based game like this really needs to be clearer to make it easier for the player to see what's going on. Moving the screen a bit to the right to give the player a little more time to react to what's coming up would also help with this. We don't really need to see the glitchy wall, at least not until we've actually lost a bit of speed and it's catching up.
Excellent game, the only issue I have is that I'll often get a very tiny hangup, where the game just freezes for something like .05 seconds. In most games you wouldn't even notice this, but flying through at 1000+ on hard mode, it will kill you almost every single time. Only way I've been able to progress at all is to just get lucky and not get those hangups at critical times.
Second, and this is more of a matter of preference, but I'd suggest that you slow the enemy projectiles down considerably, and make the player's hitbox smaller. (check for collisions by comparing distance, instead of using hitTest) As is, there's not really any time to react to enemy shots, and instead you just have to stay out of in front of enemy ships as much as possible, just jumping in for a quick shot. This would also allow you to add many more complicated bullet patterns and just more bullets on-screen in the first place. Also, add WASD controls. =P
Not bad, but a few constructive criticisms:
You need to think about how the various objects contrast with each other. The player's ship, enemy projectiles, enemies, and your own projectiles should all have their own distinct color scheme(s) that don't overlap, so that the player can see what's going on in the screen at a moment's glance. The player's ship especially should be a unique color that isn't anywhere else in-game to make it stand out. It wouldn't be a bad idea to do this with enemy projectiles as well. Enemies should stand out too, though it's not as vital as those first two, and player projectiles should be a much duller color than enemy projectiles, so the player doesn't get confused about which are his and which are the enemies.
(cont'd in second comment)