good start but I disagree with that perspective of the building.
for one thing its slower and more difficult to make a scene like that without inconsistencies.
but it makes the character look like a carboard cutout when his feet are parallel and there is no gap between him and the building.
u can make a gap but then consider u need to animate him moving upwards towards doorways and ladders and stuff (or they need to extrude from background).

easiest option is to lose perspective all together in favor of more tileable horizontal side planes.
or if u want perspective keep the bottom of the side plane horizontal and the top gets the perspective but this introduces limitations on the level design vs mixed perspectives (probably ok if u don't mix too much on screen at once.

try checking out shantae riskys revenge for some nice inspiration and nicely controlled perspectives for this type of game.

Well anyway, 'I like 240x160, I'll target that' is not quite sensible thought process. The feel of the final result is really about size of each 'pixel'; if you like 240x160 you need to think about how large the pixels will need to be on phone, using information about the respective PPIs of the GBA and of the phone screen. There is also stuff relating to different contrast ratios of displays which can heavily effect color quality.

In your position I would be making up some sample images, with different numbers of real pixels per seen 'pixel' -- 1x, 2x, 3x, 4x.. uploading them to the phone, figuring out some way to view them at exactly 100% zoom, and getting a feel for how the different scale factors look on phone. As well as the cosmetic conditions affecting it -- glare and cut-down display technology. Preparing some color gradient and texture samples to compare computer screen vs phone would be smart too, now that I think of it..

Then you would be in a position to make an informed decision about art design for your game.

(OT-ish: yeah, HQ2x, scale2x, 2xsai etc all, from experience, have this 'levels of detail' problem: The art was made at X level of detail and semi-smart guessing about implied shapes will only ever resolve those shapes more clearly, not change the design to give you 2x more detail / expression -- which is what naturally happens when you have more pixels to work with. They all have a 'coarse' feel as a result.)

Much higher energy. 
The flames on the tail look like they're in the background though, should be like on the head.

Yo.
I do a majority of the double post merging and sending out pms to kindly ask people not to.
This mostly happens with new members.
Altho I've merged and pm'd many regulars as well.

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I read the rules and it just said: "no double post"

Not quite.
Altho it's hard to find in the FAQ, the current rule is here:
http://wayofthepixel.net/index.php?topic=4265.msg53089#msg53089

The rule isn't there to make people feel bad or stifle creativity.
The intention is to keep things clean and fair.
The more everyone can do that themselves, the less I, and other mods, have to do.

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Nobody here got striked if he double posted and did something creative.
I did, a couple of times.

But you don't have any strikes. 
Were they absolved before this at some point?
If anyone else received a strike for a double post pm me, and we'll see about getting it removed.

Besides all that:
I'm all for evolving if it feels good.
So for the past few whiles, after reading this thread, I haven't merged or pm'd anyone about a double post.
There are plenty of quad+ posts around right now.
What do you guys think?
If the general consensus is that it doesn't really matter, I'll happily never merge posts again.