The fall off sort of makes sense. If you throw a ball, hit hurts people more when they stand close. That's also spurring Quote to pin people to walls.
I guess it sort of makes sense if the blade doesn't disappear after hitting someone. Still kind of an unusual change, would need to be tested.
I definitely think he should be reduced to 120 hp, because the firebug has the same and doesn't have a shield. Sure, he hits and runs, but so does Quote. He just attempts to pin people and kill them instead of touching everyone and fleeing as fast as he can. That made me think of bleeding from tf2, which is interesting, but would make him a clone of the firebug.
Unlike the firebug, Q/C was designed to get into close range and stay in there. He doesn't have indirect or ranged methods of attack to take advantage of, and that makes attacking always a risky endeavor.
And I mean, sure, you have the bubbler, but if you're really throwing a shield up, then it's not really going to matter what HP you have because you're not going to be get hit by anyone.... The high HP just exists to aid Q/C when he's in combat.
What about the fireball? Since it seems the snake would be OP, nemesis wouldn't make sense, Polar Star/Spur would either be OP or not be useful and the Rocket Launcher is of course taken. There's also the machine gun, which is taken and wouldn't make sense in the first place. Though, at least the way I picture it, the fireball would replace the blade if/when gg2 implements alternate weapons.
I experimented a little with the fireball. It was kind of comparable to a pseudo grenade launcher in role, where it'd be useful for indirect terrain or as a ranged pressure weapon. Functional, but didn't have a proper ammo system yet. I could make a test build when I have both the time and interest to do so.