I don't think the darks are quite strong enough, but I like the less purple palette. Here's a very quick edit:
I like the edit, values are better and it's a good palette alternative, but it loses some of the vividness of the colors and a bit of readibility between foreground and background. I'll try to reach a midpoint.
The higher contrast is ok, but only on the additional darkness, not the brightness. Further, I DO like the first palette best. It's alien anyway, so why can't it have a strong bright colour?
Yeah!
True the highlights are too strong..
The purple is OK, but it seems a bit overused when compared to a lot of pixel and game art, whereas the subtle colours are more unusual and refreshing IMHO.
But i liek the purple! I agree it can be a bit overwhemling, it's a bright color and it's like 50% of the image. But how often do you see a pink/purple dragon, fer cryin out loud! I tried to smooth it out by moving away from it on the shadow colors.
I think the piece suffers a bit from single pixel semi-noise.
That's an issue that you mention often, and sometimes i see it and others i don't. I tend to do lots of single pixel detailing, and the current palette and color count could make it happen in a few areas, mostly due to lack of anti-alias in such areas (due to me trying not to add more colors; doing lighting requires adding lots of color mixing combinations, which end up being used only in small specific areas, but adding to the color count).
Here i don't think it's bothersome. If you have a suggestion for reducing the effect, i'd like to hear it.
It seems to me that the highlights on his head and back are a little too white, and could be toned down a bit. Also, his elbow looks a little out of place to me. It's a bit pointy and sharp compared to the rest of his body.
On the highlights, i went for a overexposed look, such as a strong light like the sun shining on a highly reflective surface such as scales. If i make it darker or less saturated, it no longer looks like such...
The elbow is for an edgy stylish curvy lizard shape

Although i agree the use of this design element it should occur in other places, looks like it doesn't fit with the rest of the anatomy.
Before doing changes, i think i'll try not to look at it for some time (a day or so), to get a fresher look the next time. I'll limit it to palette tweaks. Thanks for the comments.