Help Wanted: Apples Within

[Gors]

The truth is that you should try and avoid dithering the most as you can

While it can be used to create midtones, it has a secondary effect of texturizing the surface you dither on. So, the creature's skin will look grittier than you expect if dithering is to be used.

Since you are not following any hardware constriction, it is alright to go and create more shades - of course, with proper contrast and volume in mind. Follow C2B's example closely for your next sprites.