I was and am heavily turned off by this mechanic as well. I get the argument that it provides tension - I have experienced that myself and lived through it, which was fun.
On the other hand, I have far more often lost significant progress to this otherwise meanlingless mechanic. The argument seems to be, that getting better is the idea, but how can one possibly arrange for all circumstances from the get go without any knowledge of the demons, possibly no knowledge of the series at a whole?
While preparation is of course necessary, I don't think it would be possible to cover every possible deadly situation for the MC without prior knowledge of the path ahead.
Most of the time the game circumvents this problem, however, through shortcuts and quite a few save spots, which made it overall acceptable imo (I am at the fifth arc, for reference).
[...]clunky navigation where you get jumped because you moved to a wall instead of the enemy.
This actually killed me more often.