Well, I finally beat the boss. I don't really like the fight though.
Combat is slick and movement feels responsive (and being able to cancel out of a lot of your stuff with the dodge is great) but with the jutsu now taking inputs to pull off, her fireball thing having a weird arc suddenly becomes a huge problem.
Basically, you have to be at a very specific distance to actually hit the boss with your fireballs, and he can get closer to you while you're inputting it, which makes it miss almost every time.
Even if it hits, it doesn't do very much damage.
The counter-attack thing is still broken, even if the kunochi's pussy passes directly through his face when his icon is flashing red, it still doesn't count as a hit, and the only other attack she has that actually does damage is the third hit of her normal combo (the ass-slam) which requires setup since it has such a long delay.
The only way I found to actually damage him was to bait out an attack (or get him to start blocking) and then start punching the air in front of him, so that by the time the ass-slam is about to come out, he's actually in the impact-zone and not blocking.
If you try hitting him directly, he'll counter before you get to the third hit, you HAVE to shadowbox the first two hits for the third one (the only one that actually matters) to hit.
The fact that he can kill you in two hits is pretty frustrating too. Also, knives and smokebombs don't do anything to him.
... actually, I didn't try the smoke bomb in 0.10, but last time around it didn't work. Maybe they changed that? I doubt it.
Ideally it'd stun the enemy to give you a free big hit, maybe a mini-takedown that takes off a chunk of his health?
As far as I can tell, trying to counter his spinning move with the rice-sack is just a trap. I've tried pressing attack on the red flash, and impacting on the red flash. Both cases didn't accomplish anything.
It's just a trick to bait you into trying it so that you'll take damage.
Jump and dash over him until he's done, then go right back to laming it out with the ass-slam.
Basically, the game gives you a bunch of tools to solve problems, but then throws you up against a boss who ignores all of them.
The porn is good though.
Edit: The small gaps you can crawl through in the cave work like the basket-traps now. That's neat.