Accurate, but it looks like you just shrunk the image down and pixeled over it, or at least traced it. I don't have a problem with that per-say, but the result doesn't look as good as if you were to interpret the image in the best way possible.
For instance on the face, even though you could argue it's an accurate resizing of the picture, it lacks the definition which a resourceful artist could give it and still maintain the same likeness.
As for the dithering it maybe a bit overkill for the size your working with. A little here and there would be OK, but so much at that size crowds out the detail.