"Smart people are telling you it,s a problem, why argue?" Thats like saying "Your friend your stupid, why argue?" I'm just expressing my opinion, just cause some "Smart Person" tells you something doesn't mean you have to listen.
It was not shrunken down, it is supposed to be gradient, I don't get what your guys problem is with so many colors... And I came here to C AND C (Critique and Comments) not just critique, so please tell me how I can fix the mustache
First, most of these people have had years of experience, and a good amount of them are professional. It's like getting a suggestion from a university professor. If your asking for critiques and comments, leave your pride and self-righteousness at the home page and be ready to change what you do.
Second, look at almost every thread in this section. I can guarantee that each sprite of a similar size to yours has less than 100 colors, in fact most of them probably have less than 20. You should probably read this-
http://www.petesqbsite.com/sections/tutorials/tuts/tsugumo/chapter6.htm and the rest of the tutorials on that site. And for a quick suggestion, try making the sprite again limiting yourself to 8 colors. Then, add just enough AA to make it clean. I'm talking from experience, too. I used to just whip out a new color whenever I was shading a different region, but once I limited myself, everything I made looked better. Everything.