Your character reminds me of lolo from Adventures of lolo/eggerland but with snorkels eyes.
If i'm to admit influence in the character design, it will be Pacman (i mean, in the cartoon, not in the game) rather than Lolo(lo) of eggerland (which i only discovered through his cameoh in Kirby's Avalanche game, after years of Bilou drawing), honnestly. But again, it's so damn far away in time, that it's cultural background more than real "reference material" ... As Helm pointed out, it seems that a ball with hands and feet is just a stereotype of "i need a character for my game" just like "a red hammer" is the stereotype for "think of a tool of some color" (at least for french-speaking guys).
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By the way, it seems that as the time goes, they modified his appearance so that he quits being just a ball and has some more "recognizable" (?) combination of colours (though my own mind identifies that as "omg, poor Sonic, what did Dr. Eggman do to you ?" -- don't ask why).
Anyway, i plan to stick on Bilou's appearance because he is immediately recognized by the people around me that are waiting for a Bilou's game for years. I acknowledge that if i were to pick a new character or targetting large audience (or if i was to write a game with Helm in my team

), i would avoid blue balls, but none of this are true. I'm just trying to come with some decent graphics and writing the game is long-term hobby rather than market-driven job.
Perhaps you could add some bleeding over of the grass into the bottoms of the tree-trunks or a few piles of rock around the base of that platform.
You mean something like (1) ? (please, excuse the very ugly-edit-in-a-rush-at-work)
Unless the blockyness is an aesthetic choice, which it doesn't appear to be from what I've seen illustrated on your blog.
blockyness is only partly a choice. It's over-blocky here due to WIP, and (2) shows more how it's meant to be. I say "partly a choice", because leaves and treetops are meant to be platforms you can climb on, so i decided to stick to "rounded rectangles" look for the trees.

I plan to have more "natural" trees in the parallax background plane (which are über-wip atm but let's just add them) and are based on background for DK:King of Swing. They'll be 16-colour so that i can afford more tiles there.