I also liked the original version better. I had been trying to find an orange bg color that would also make the character readable, but I couldn't get one that wasn't really gross and unsaturated.
@coran Thanks for the ideas. The AA in your edit made the bg look worse I think. My AA probably isn't that great either though.
Anyways heres my new version:
I changed the palette quite a bit here. I'm using a redder ground color and went back to the pink I had originally. The bg is now AAed as well. It's still not as smooth as it could be, but it's better! I changed the HUD quite a bit. In general it's just smaller, and opens up the top a bit making the sky seem a little bigger. I wanted to add a shadow but I'm actually not sure how it should go, because the sand isn't exactly flat, and if this does actually get made into a game, I will probably have to figure out a shadow that will look good everywhere. (At least in this sandy area, anyways.)
I didn't finish the shading on the ground since I wasn't completely sure it would look alright. Looking at it now I think it will work out good. I'm going to add some plants or foliage next I think. Probably some birds in the sky would look good too. I dunno.