if his critical bar is completely depleted, dead forever.  if the excess damage done is more than 50% of your max hp, your are just killed outright, so make sure you don't put weakling troops where they can get smashed, or you'll need to hire newer, weaker troops

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Any rpg game in which things "die forever" is going to get very annoying. it means unless your particular good or very careful you will need to spend money and effort on replacing troops after every battle. not only that but the fact that in a game like this you will always be looking for the best combination of classes within your team. having "permenint death" in there will really make it hard to do this. and even if you manage to get your desired team together it could be ruined quite easily. Maybe I'm thinking of this game too much like FF:T but as i said, i think permenint death could ruin alot of the fun in this game.
Also,as well as having troops under your command would you also have your own permenant  personal character out there? one that can be defeated but never killed?
Apart from the permenant death thing its good to see you getting into the mechanics of the game and i love most of your ideas you've so far (the trailing blood would look so cool). if you need another artist for the game or some one to help with game mechanics id be very very happy to help.

Hmm i must say I think the first background you did suits the picture more better. without it people looking at the picture might just read "Tex's Ass" and not get the Texas reference.

Also the lighting on the figure is suited to more of an indoors setting.

As people advance in a game they really want to look a lot cooler then when they started. Make your classes progressively more extravagant. at the moment they all look to similar.

No crits on the actual art its self

I <3 werewolfs. 15 colours.

oh and heres the progression.