In terms of character design, I do like the cape more, although do be aware that it will be a much bigger pain animating him now. But, it will look cooler.
Although I think he has way too many color themes. Green pants, silver breastplate, red cape, and blue shoulderpads makes him seem too colorful. If you want to make him warmer, I'd say change the blue and green and try browns and beiges. If his color scheme was brown, red, and beige, I think he would look more cohesive as an entity.
Also, be careful with the banding! I notice you're trying to use AA, but you're overdoing it.