Actually, no. You might have made things worse.
First, look at the arm. Typically a cylindrical or tubular shape will have the highlight in the middle, assuming that you have your light sourcing from above and not just to the side. You have it shaded as if the light were coming from the left, while you shade (some of) your other elements as if the light were coming from above.
Which brings me to my next point. Look at the two shoes. The one on the right is actually shaded pretty well. It has shading in accordance to the light source, and it even has a highlight at the tip. The shoe on the left side, however, does not conform to the same shading. In fact, the left shoe's shading could very well be classified as pillow shading (very, very bad). My suggestion is to remove the darkening along the top edge of the left shoe, and keep that region the base color.
Now, about those eyes. You seem to have the right idea. However, you have shaded them as if the eyes were cupping in on the head (rather than outward). Typically reversing your shades will help, though for the eyes you may need to take a different approach to the shading. Remember that when I did
my first giant pixel-art piece, I had to redo the shading on several parts since I didn't like how they looked. Experiment with one approach, and if it doesn't look right, go back to an unshaded solid color and try something else. Keep trying different methods until you find something that works.
I think the first thing that came to my attention on your new revision was the bottom-left portion of the right ear. Here, it looks like the ear is partially dislodged from the head. My suggestion is to remove the darkening you have there and instead apply some sort of outline to the top side of the ear in order to make it stand out from the rest of the head behind it.
Oh, and highlights! Yes, add some highlights. I don't even really see any new ones in this revision.