Kind of clever idea, but... no.
At least this gimmick could've been less lame if death was a little more avoidable. During one part there was a gap you need to bounce off an enemy to cross, and I jumped on it, then went back, and realized "Oh shit." I went all the way left hoping to be able to leave the screen and reset the enemies, but nope. So there I was, knowing I could only die.
The 'low' option for particle effects isn't low at all. I know particles aren't exactly the most CPU-intensive objects around, but given the absurd number in this game and the incredibly bloated runtime environment that is Adobe Flash, it adds up to be a bit of a problem.
The original was great, but this is far too damn frustrating. You've got crazy enemy movement patterns, weapons that take too long to reload, and an utterly pointless mechanic of pressing space. Top that off with having to make sure colors hit you from behind and you've got way too many gimmicks to keep track of. I quickly get swamped and have to continue faster than I can regain my pixels. Perhaps if you kept the weapon exp you earned over the course of the level when continuing rather than resetting to what you initially had, the difficulty curve wouldn't feel quite as steep.
Aw, it doesn't automatically stop when every tile is lit. That means no infinite loops of recursive function calls. You should change that, then us programmers can use really sneaky shortcuts to cut the total number of functions.
It seems if you get hit once, you're helpless for a while - long enough to lose all your health provided you got hit once. There really needs to be some way to recover.