Looks more like a third eye in the middle of the skull to me, Hishnak.
I agree on the water level comment, though.
He'd look alot more lively if you switched up the anim every few moments between this idle stance and maybe a swing of the tail or roar or something, like some fighting games do.
But if he's to be hopping around alot, then he might not be still enough for such a switch-up to be useful.
I agree with Stewlin about the fingers. They'd look better and less obviously repetitive with a more subtle movement. This might just be me, but I think animations should be like tiles in that you shouldn't be able to see where they loop, which is probably the reasoning behind my two previous suggestions.
I think rockets would best fit into the armor that's already there, like on the front, above the warning stripes, have some doors or something that opened up when he was about to shoot them.
Well, definately not a T-Rex or Raptor; neither of them have those back scale thingies...I don't know, I'm not very wise when it comes to dinos.
