WOW. Thanks for highly useful comment. You are right about shadows, I realized it is illogical afterwards too. The stalk should be dark of course, it is the cause why picture looks a bit odd. I am content with the result of non-dithering experiment even with some serious flaws and intend to try something else with this palette.

So much to love here!

-The yin-yang shading on the sun and smoke trails.

-The interesting shapes of flat colors.

-The warm-cold palette choice.

-The interaction between the caterpillar's dark feet and the saturated surface of the mushroom.

-The mellow mood

Few crits:

-Shadows: they don't seem that consistent (like the brightness of the mushroom stalks). The implied twisted angle of the mushroom doesn't work for me. My logical brain wants the sun to be the light source.

-Layout: The underside of the mushroom top is cool, but the angle of the top makes the caterpillar's position feel contrived. An actual caterpillar might not slide off, but this guy feels like he would. The resulting precarious nature runs contrary to the otherwise laidback theme of the piece. The current perspective would be stronger if the caterpillar's angle matched that of the mushroom. Also, a more diagonal arrangement of the insect could vary the composition in an visually interesting way.

I went into a lot of detail on the crits, but I don't feel like they take too much from the piece. Good work! Bonus style points for anti-aliasing red shapes with green pixels (the sun and the pipe).

Thank you very much! ;-)

I agree, and the seven choices that you made were very good ones!

The red-green combo gives the mushroom a very nice sickly feel!

 Awesome.

 Love your style, man.