My impression is that the pixel crunching was done intentionally to create a painterly look. If that's the case, great, although the size is too small to judge accurately. Again, if this is intentional, then I would soften the edges unless it's the "mosaic" tissue paper art effect you're after. Perhaps what I'm saying is that it's difficult to judge exactly what you were after, although there is great potential for a variety of options.
However, if the painterly look is not what your goal was, then I agree with Dave and Mike - OTT.