I see only two reasons to play a game with perma-death. Either because replaying it is rewarding ala modern roguelikes, and an intentional aspect of the game design. OR you do it because you want to test your skill and knowledge at one particular game with any failure resulting in total failure, the risk heightening the tension. This is definitely not one of the former games so seems to me that honour mode worked just as intended in that one.
I think you just got pooped on, buddy. As a side note there is actually a "correct" way to beat this fight which should become apparent to you if you survey the battlefield in detail, it is after all a dungeon themed around illusions. WINKETY WINK WINK.
I feel you though. Honour mode is cruel.