Jay, it got kind of buried, but I was curious if you'd been to the Blackmarket yet? Because that's really the key to making the game super easy (and super DUPER easy if there is a jetpack there).
Further, you need to get out of the "don't anger the shopkeeper" mindset, get to the Blackmarket, and MURDER THEM ALL AND TAKE THEIR STUFF.
Heck, at this point, I murder the shopkeeper anytime there is a freeze gun and other decent items (freeze gun is an easy shopkeeper kill) -- even if it's on 1-2.