BluePhaze I've made the changes to the pit in stage 1 and reversed the hit point bars for the player and enemy! Thanks for the find and suggestions!
The dagger is obtained automatically when you level up the first time. I didn't want to give it to the player right off the bat because I find it makes the game way too easy at the start - you need it for boss fights later on and in the store you can level it up. You can get up to 5 daggers at once to throw and later on (not in the demo) you can get magic daggers that pass through enemies and do more damage.
I'm really up in the air about multiple weapons as it might make it feel too much like Castlevania. And once the dwarf is programmed in, he throws axes on top of the bullet hell you create with 5 daggers!
If I did it I'd probably do hidden chests instead of weapon drops.
So you didn't miss anything - it's just the way I decided to do it... it's more like a power up than a weapon pick up for now.
New files uploaded within 10 minutes! Thanks for the awesome feedback!!!