I'm sorry but are you actually supposed to be able to make up anything in that unholy blurry mess? The fuck is this i can't tell what the hell it is i'm looking at.
Look at the gun. Is that a giant hand with a thumb holding a tiny rifle?
I had the same horrible feeling initially. Ended up glorifying this game.
What can I say... If you give it a chance, it'll likely grow on you. The environment changes too, the map layouts and encounter placements are witty, sending lover letters to ingenious gaming designs of old.
As for the melee and no ammo, etc. That is true only during the very early stages of the game. Later on, using melee is mostly only about an optional 'have at you' dimension. Ammo comes in sufficient quantities, allowing the player to kill everything without a single melee hit and still have some reserves left.
I say sufficient because the game emphasizes the usage of appropriate weaponry for particular situations, utilizing head-shots and barrels, bottle-necking enemies to dynamite them en-masse to smitereens, etc.
Going all-Rambo is certainly possible too, but only every once in a while.
A very slight spoiler: there are two or three passages where the latter is actually the mission's objective. For a change, ammo and power-ups are lying everywhere, and you are supposed to go absolute Doom on your foes appearing in crowds.