I don't like what you've done with the edit, Vic. You've given the waterfall so much depth that it's lost its watery texture. The waterfall is BG, so it shouldn't try to be afocal point for the viewer. As well, water conforms to the shape around it. Ther'd be splattering because it's going off a cliff, but the water should not have much depth or shape to it. this is ideal for it to be a part of the BG. Your grass has much less grassy texture than the original, and the way you've changed the shades loses a lot of info. The send and-third darkest shades are pretty much wasted b/c they're so similar and hte last is so dark it feel completely spearate from the rest of the grass. This is why it's lost so much information in your edit.
Joe, if you ever get stuck, the best thing to do, the first thing that you should want to do, is google(specifically the image search). Google for a waterfall, and try looking for VG examples of waterfalls(there is one in almsot every single game, and probably every RPG). Look at references and try to find he key details and put them into your mockup.
While you're searching for your waterfall, do a google for palm trees. Your leaves on your tree have weirdly placed beginnings and look unnatural.
I recommend applying hue-shift to your colours. By this I mean shift the hue of each sahde clsoer to purple, and each highlight closer to yellow. Monohue shades, while can be pulled off, are usually boring.
I'd like to see some little 1-2 pixel of grass added to give some texture and variation on the ground.
Good luck with this, Joe