Could work
Not seen something like this before, it's a decent idea. I think the best thing you could do would be to add AI. Most people browse NG on their own, and will blam this because they can't play it. Some idiots will probably even complain that nothing happens, most of us expect a 1-player game.
AI wouldn't be too hard. You just need the enemy ship to constantly move towards you when it's chasing, and move away when it's escaping (both with some level of randomness, possibly variable depending on the level difficulty). It'd be easier to do if you add walls instead if screen looping.
The controls were annoying too. I didn't like how the ship had constant acceleration in one direction, yes I know it's realistic, but it'd be more satisfying to play if it decceralated over time.
Graphics were pretty good. The sound annoyed me though, that 'hehe' noise was funny at first but soon got very very annoying.
I'm forgetting the game as I write this so I'll leave it there, but it's a good premise that just needs a little more. I think this deserves a 2.3 but will probably get lower than that due to the 2-player only thing. Hope it survives though ^_^