you should so totally release the source for this, the way you generated levels is pretty damn clever.
I second this.
Personally, I think it's really quite fun. All it's lacking is something to slash besides enemies - some kind of obstacles to bust open and compartmentalize the levels would be nice; maybe be a little more generous with the treasure (implement a cash/scoring system?).
The only fumble I had with the game was mandatory mouse-aiming, and with the combination of roaming and fighting, I can see why you'd go with that. I'm playing on a netbook though, and it doesn't like using keys and moving the cursor at the same time. So I ended up spending most battles facing one direction, and manuevering around to get in hit range. A little more knockback when hitting bosses would help; because it sucks that scoring a hit on a boss often results in taking a blow yourself.
Zebra is an awesome touch, too. So... does the forest simply loop itself when you win it? Or am I somehow insta-dying unexpectedly?