I was gratified to see that combat is still considered a major work in progress, because as it stands, it just isn’t very - and it needs to be fun. Even if it is 100% avoidable, I think exploration and stories alone would not give enough substance to the game - it would feel monotonous quickly.
Now, with work and a tight focus on interesting decision-making, the current structure could probably be made to work (though additional features may have to be added - like a way to predict an opponents next move). You’d to make both combatants feel more interesting. Right now, it feels like a very pale imitation of FTL.
But I wonder if the current system, at it’s core, really fits Sunless Sea all that well. SS is very much a game about fear - anxiety over what’s lurking in the dark. Likewise, the combat should feel like a deadly game of cat and mouse, and paranoia at what every shadow may hide.
I wonder if a more real-time, immediate and slightly more action-focused system wouldn’t serve better. It’s hard to feel anxious staring at two static portraits, waiting for ability timers to tick.
Here’s what I’m picturing: There is no combat screen. You can still pause the game at any time. Monsters hurt you by touching you or "casting" ranged attacks. The illumination concept is replaced with actual battlefield illumination: Your flares temporarily place zones of light on the zea that will help you spot your opponents - or help them spot you if you’re dumb enough to drive through them. Stronger flares are brighter, and the illuminated area is larger. The "sacrifice fuel for speed" mechanic stays exactly as it is.
Once you spot an opponent, you attack by clicking, but you have to account for your guns firing arcs, the turn rate of their turrets and projectile speed (this part is kinda similar to SPAZ - but with a pause mode and a few more strategic options).
You also have to be very strategic about using your lights: They help greatly spotting enemies, but also paint a big target sign. Of course, turning them off is not for the faint of heart - or the high on terror. eg
I realize that it may be too late for such a major revamp, but I suggest you at least try crudely prototyping radically different combat models (even if you don’t release them).
Getting combat just right is essential to the overall atmosphere of the game - and this game is ALL about atmosphere imho.