1. It's two separate locations, but the health of the player and enemies simply transfer between them. For example:
Still working on how allies interact with Parlay. I may make some, like Bill, remove your ability to do so.
I'm currently working on magic as well, as some effects would linger into sexual combat.
3. Less hassle. There's a little block of text that has to go with enemy encounters, mostly to reset all of the combat variables, but to fight a Giant Snake I simply add in {type: "Giant Snake #", gender: "Futanari", health: 100, attack: 10} after the block, and it gives me a snake with 100 health, 10 attack and is a Futanari for the purposes of trying to lewd the PC.
I could specify every single enemy and their subtype or I could do this with relative ease.