Sorry for falling behind on these posts, been a bit ill this week.
Today's episode has the first boss fight of the game and I think it is a pretty interesting one in that it feels like it is intentionally unfairly long. Every time you take the boss down she immediately regenerates tougher and with more friends. It seems to me that the designers want the player to run out of health at least once in this fight so they can introduce the equivalent of lives.
Basically whenever you run out of health one of your active functions blows out and is unusable until you have visited a few more access terminals, so your options and abilities are further restricted. Enemies are not reset so you do get to keep pushing on, but you feel restricted and damaged. I like it conceptually, though I do have some reservations because I have a tendency to have only 1 or 2 damage dealing functions active at a time and I could see myself losing both of those first and then literally having no option other than to throw the remaining lives away.
It will be interesting to see how I feel about it later in the game when presumably I will encounter that state much more often.