Sure, the muted palette is just my personal taste
What I really wanted to show was how hue-shifting can make your colors more dynamic and interesting to look at. In your sprite there's no hue-shifts going on. But real world colors don't work quite like that, at least not in terms of how our eyes perceive them. In areas with less light, like the underside of arms and such, colors will appear cooler and less saturated.
Here's a more saturated version with skin colors shifted a bit more towards orange:
About the newest bang: Looks cool. Gives it a bit more upbeat, cartoonish feel than the grimness onslaught of Silent Hill tho if that's what you're going for.