Item degradation is pretty emphasized in this game. I don't think I mind it as such as it creates some nice dynamics in which items you choose to repair (where) and which ones to wear when. The only thing is... I don't know why but I keep missing those small icons, and accidentally allow armor to break.

I think they could afford to be more emphasized though I'm not sure how. Maybe when a piece of armor first reaches critical (red) condition, the icon should flash or start much bigger before quickly shrinking back to its current size.

Indeed, and it would be nice if e.g. a red text message is drawn directly above tux to draw the player's attention to this and to other issues such as overheating, low HP and low running power.

Perhaps with messages such as
"overheating"
"exhausted"
"critical damage"
"armor breaking"
"weapon breaking"
in the same positions as the effect count-downs.

maybe with !text!