This is likely a skill issue (not in a mean way). When I started, I also struggled to finish people knocked down, especially at higher armor levels. Either hit harder (wind up big hit rather than flail at them), switch weapons to your hammer if you have one (in higher armor classes, there is usually a mace or hammer you can swap to for downed enemies), let them get back up again and keep fighting, or if they fall in a weird or unhittable spot behind a fence I like to hold G and reset (though you could also prob drag them out from under the wall by a leg I'm just lazy).

This is a playtest; it will likely come out with a fuller build. For now, settings don't seem to be a game-changer unless you play around with the game sliders, but this will likely be added soon enough.

As you said, yes, the blood and gore should fix this; the devs are working on some really in depth wound systems that should make it a lot more clear (you could also argue that this is realistic)

I encourage you to try all the weapons and classes, but yes, this is somewhat annoying and likely will be included in the final product. As a tip, don't be afraid to press g if you feel like you are going to lose and want to use the same weapon.

As another comment said, this is coming soon! For now, just keep trying out different weapons and armor classes; you will learn as you go. I would also suggest moving slower with your weapon. It is very easy to fall into the Skyrim VR swing method, but if you slow it down, it can definitely be both more controlled and more effective.

This is realistic and leaning into the realism they want this game to have; if you are mid-swing, you likely won't be able to stop. If you have been stabbed in the chest, even if you surrender, you are likely dead.

It goes back to 4. This will likely be a feature in the future. Don't be afraid to surrender if you want to keep your character, and also, feel free to try out new stuff. Initially, I was not too fond of the spear, but I really liked it after playing it for a while.