- arms/forearms are ... yes, more readable but not enough IMO. Sadly, I have nothing to suggest for improving, maybe tweak soldier contrast? Dunno...
- a few aliasing on right shoulder edge needs quick correction.
- about the saturation as WM stated, I maybe agree, here is an edit, gently lowering sat in dark blue:


 
your call, now.

I admit that knowing how things works doesnt imply succeding in created them, I think sir st0ven's tree process could help you more.

mmm.. no not darker, thats not what I meant.
Contrast too high here means that you are juxtaposing light and dark too much.

sample:

1 - contrast depends on where you decide to place a certain amount of light/dark
2 - contrast also depends on how you define relations between light/dark in chosing your color palette.

seems like you're using "demoscene tradition" to substitute for proper typography.
make sure your letters don't look like the wrong letters. The A looks like "C-" and the M looks like"X"
I also mistook the m for an x and would never have been able to gather the crescent was part of an 'a'.
To me it looks like C X backwards-9.
 

I understand where you want me to go, I  just wanted to symbolize letters... but oh well.. Ok Its cleraly a fail!. I'll drop the symbolization idea and I'll go back to understandable lettering.

why such saturated highlights are hitting such neutral values so quickly.
When theres such a harsh drop off of saturation in places in the 'm' character it reads a bit off to me.
Compositionally, there could be more in the background to tie together your lettering,
layout/composition feels a little too loose

composition is bad. no consistent light source. highlights are coming from everywhere and nowhere.
shapes are out of perspective. they each have their own skewed angles so they don't fit together.

@ALL:
So the hard blow is:
there is a need for a complete rewrite, these flaws in mind. It hurts because I will have to restart the whole thing from scratch, but understanding truth is a more rewarding path! So Warm Thanks for that!

Well I think the thread is paused now
until I'll go back with a fresh piece, but forgive me because Im REALLY slow at pixelling

Ok, here I go, I'm now entering the arena with this logo I made.
In case you're wondering, this is a logo for AMP,
a website dedicated to amiga music, past and present.

I really dont know how I can improve it even if I feel it has flaws.
So your critics are my chances to finalize the pic...

nb: 23 colors and no embed color profile.