That's very neat actually.Even tough, considering the level is basically a Hill Top zone, I woud suggest making the pit much deeper, and make a Death Pit FOF. Because a pit like that in the sky feels very weird to me.
http://gfycat.com/PointedMadGreyhounddog
Here's how deep the pit actually is, since I don't think I've fallen down many pits in my gifs.
The starting platform is "ground level", so to speak (the height I'm using to compare heights in this level)
It's not really supposed to be high up in the sky, just a cliff in a forest, which (at least, judging from what I'd imagine) is shorter than Hill Top. In fact, judging from perspective, the forest's taller! :P
While I could make it deeper, falling down pits is already a sucky way to die (possibly the worst way to die, since it's insta-kill, over-punishes simple mistakes at times and, if the level design is bad, can blind-side you), so I don't want to prolong the death sequence anymore.
I probably will make one of the shaded areas have Death Pit to it, though!
I will keep some of your suggestions in mind for the fourth level in the pack, which is a sky level.