I really like the way this is turning out. I did an edit based on the earlier version. Then pixelation went all screwy and I couldn't post it, and now it looks like you've taken it in a completely different direction.
Thought I'd post it anyway.
Basically, I removed the dithering. I feel that, generally, pieces done in this style are better suited to flat shading, as it helps retain the, I dunno, cartoony feel or something. I didn't change much, other than that, as far as I remember.
Honestly, I liked it a little better when it was a bit more simplistic, but it looks like you've decided to go in a slightly less cartoony direction, so my edit may be a bit useless at this point
. If nothing else, though, I'd check out the AA and maybe smooth your version out just a bit. You have the proper colours, so you won't even have to mess with your palette. Regardless, I'm liking how it's coming along. Nice work