Not a bad kit, but I have two thoughts:First, why on Earth do you need seventy thousand values for every hue? More than four is just overkill for something this tiny unless you're actively aliasing it which defeats the purpose of pixel art anyway.Second, that MoLtoran head is really too far forward - It might be set accurate, but the set looks goofy and it'll work better in a more natural position above the shoulders.
As the creator of the original kit, I believe I can answer both these questions.
First, DSS was in part made to be like a scaled-down version of the MNOLG Character-Creator Kit, and uses the same colour palette. I chose to use the full range of colours because it allows for more shading and difference of tone, giving the sprites a more three-dimensional and textured look. I personally find that it doesn't take SO much patience to recolour with a 9-tone palette.
Second, I can't really speak for this because the MoLtoran sprites are a fan addition by TNT, but the kit was made to be very set-faithful. If the sets looked hunch-backed, then the sprites look hunch-backed.
If you take a look at my originals, you can see many more example uses of the kit including one larger-scale sprite (Tahu) which better showcases the advantages of my 9-tone system.
Still, I understand and respect your criticisms and I'm pleased to have had my kit looked at by the creator of the archetypal Bionicle sprite kit