I'm liking the art direction myself. I also think the proportions of the critters on the screen are just fine (maybe make the wolf a little smaller, but still significantly larger than the rabbit).
I think the backgrounds are a bit too blurry (the trees and snow and the like), in the "it's all so blurry without my glasses" kind of way, not the "it's the art style" kind of way. I would also agree with Era's comment that you should find a way to make the areas you can walk on a bit more distinct than the areas that are just scenery, as in the end this is still a game and as such you need to clue players into the rules of the world before you send them against it.
I love the creature animations (the wolf turning is BEAUTIFUL!) and I love the idea behind the game. I look forward to seeing what you do with it!