I think
@machok tried to make this port as close to arcade as possible. I think original arcade is hard and quite good balanced (by hard i mean the hardest level which can be set with switches).
The change that we can press enemies to one side of screen and beat them to the pulp (with good reflex we can prevent enemy to even fall down until he is eliminated; works also with bosses) is not good change in my opinion. Beside it is not that game keeps enemies always in our sight - enemy can go off screen on their own for a while and return. So current state is not even consitent. In original player could even loose enemies - when they spawned the method was to continue walking to the right, leaving them off screen on the left. If we reached proper distance, enemies were auto removed. Version 2.1 didn't block enemies on screen.
Original arcade mode is not real arcade mode - some original levels were modified to the point of no return. For example industrial area, or Belgar area. This mode wasn't in 3.7 and I think there is no point in keeping such mode in the game.
As someone already pointed, assasins can hit you sliding when player is doing flying kick - it is flaw in my opinion.
Roxies can turn their bodies in the air and sell player a hit (still in the air) which looks stupid and is totally off reality.
Enemies can attack player when they are not in the same row. For example Slash and Axl can be out of player reach because they stand a little above or below and still are able to punch or kick player without moving an inch. In original only bosses and Andores were able to do it.
Please add the possibility to throw or drop sword in Sodom fight. It is really easy to pick it up, and almost not possible to drop it (Sodom must hit You, no other way).
Original has not such feature as dropping weapons, but in arcade You could switch weapon with other weapon, which SF89 doesn't have - SF89 allows player to throw any weapon, but not on Sodom fight.
Arcade has limited number of knives laying on the floor - to 6 objects. Maybe it should be implemented to SF89 as well? In arcade 6 knives on the floor made bosses to not able to fire any weapons (Edi couldn't use gun, Belgar couldn't use crossbow) which was a bug in my opinion. But too many knives are also making the fight area frustrating.
There is issue with grabbing enemies - not sure why and for what reason.
Throwing enemies do not give the same moment of invulnerability as it is in original. When throw is performed and in the same time fat man is rushing through player, player will get hit after the back throw even if fat man is already out of player hit box.
Sometimes we can punch enemies till their death, the sequence where after 3 or 4 hits player should kick off enemy or be ready to throw him away is not performed.
Slight fixes where made to back jump, but it is still not working properly. It is much better than in 3.7 but still not reliable to use it.
When doing back jump, attack button will change the back jump into back jump kick ... Is it intended movement?