I actually built a fairly functional combination of bullet hell and tower defense game in Godot about two years ago. Beware, though: the 2D lighting system for Godot is extremely slow, so if you want a buttery smooth FPS, don't do any crazy lighting.

Godot will do the job quite well, although there are plenty of alternatives that may also be worth a look (some open source, some source available): Defold, Solar2D, Heaps.io, etc. There are many good choices nowadays, although Godot gets the most love on HN.

I played with it about 2 years ago (even contributed some code to godot-cpp!) and it was pretty good, but it did have some gotchas and issues. Many are likely fixed now. You should just give it a try, its easy to get started and then you can judge for yourself.

Yes, Godot would handle that very well.