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the dragon is good, but the person looks unfinished and has no point in the picture....
I like the overall look you have going, but there's really a lack of depth in the image and it looks like all of the dragon's parts are squished on the same plane. You could be a little more selective with your colour placement to make his head pop forward and the tail recede behind him. The texture is nice as well, and could be a good tool for adding depth by varying the level of detail and contrast.
The description says it clearly: --the base outline is there because this is an "item" that can be worn on the "avatar"--