I partially agree. I zoomed in 3x right away, and I think its OK magnified, but in 1x this could be an issue. Although could work that way too if animated.
I agree with adarias. It's a problem that you might want to fix. I think that you ca fix the problems just by looking at some mockups of adarias himself, caus eon those mockups youll have to be blind not to see the characters. But well, nice work, although it's hard t see what is what in this mockup...
this is where those readability issues really kick in - characters are practically invisible by gaming standrads. all of the work is very nice, you just cant see any of it
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Edit: Oh, and I should point out that shadows would likely being a programming thing.