It's design, certainly. 10 HP (the most you can gain with one level, and impossible to gain when going from first to second) is still just one or two attacks. You've extended your ability to fight by, maybe, a couple of missed rolls. Congrats! You've still got to keep the wizard standing, and take down the goblins before they can sacrifice the blacksmith's son. HP doesn't directly help much with either.
One level is a big step up, but HP isn't quite the measure of effectiveness that it is in D&D. I'm not sure that I agree that you get much more effective. You get much more HP, sure, but HP != effectiveness.
Con does factor in twice, but that's by design also. It means that a high con can really offset bad dice, but you still roll for HP (which is there as a nod to the source material).