For the most part it's looking good!
The only part that is throwing it off is the hud, usually these were dedicated parts of the screen, or very simple overlays (SMB2 only managed 4 hearts I think, and even they were spaced vertically)
With the NES it had some limitations on how many sprites could be drawn on the same horizontal line (scan line) of pixels, so it was generally avoided to use sprites and make the hud in tiles instead. The NES had two layers; tiles and sprites.
I really like the player sprites without blackoutlines, wouldn't change a thing!