Blur can definitely be improved a bit, but do you have any suggestions for the stars?  I tried to make them act a bit like expanding buzzsaws.

And no, I just like the style.  It's simple, but really nice looking.

I really like the transformation (including the blur although it could be improved), the little star things are less well animated and in general kind of boring though.

Is this actually for the game? 

the blur frame is to close to the next action frame, give it some space before doing any other movement, other wise it looks awsome.
But don't get me wrong. I like the blur frame . leave it
 

I would remove the "blur" frame, I don't think it's necessary in this case. Other than that, it's looking great.