You can now change the AI's difficulty level and choose your colour when starting a new game! They have no real effect yet, as all players have the same abilities. This will change in the next update though.
I also added some more animations and improved sprites, including coloured text. That seems like a minor upgrade, but it was actually really annoying to add. There's also a new patch notes screen in-game, which looks like this:

Patch 1.1 Notes
Gameplay
- When starting a new game, you can now change your colour and the AI's difficulty levels
- Ships can now be repaired manually
Graphics
- Improved many sprites
- Flags are now animated
- Added coloured text