bugala and I chatted on the IRC earlier today and we had a graphics brainstorm. Here are a few things we decided:
1. We didn't want to use the bean guys, it was too much like veggie tales.
2. We wanted to do a pixel art style because the art is easy to produce.
3. We didn't want to hand draw any animation, that takes too long.
4. We liked this as an inspiration piece: Some Prototype Art by Dan Cook
With that in mind I suggested we stick to characters that were a single simple shape, with a hat, and a weapon. These would be animated using achild's Basis tool so there would be no hand drawing and we can reuse one set of animations for every character. This lets us have warriors with axes, swords, clubs, etc all attacking with the same attack animation just by changing out the weapon sprite.
We both liked the idea of egg characters as our simple shape. So here is a quick test I did to gauge everyone's reactions:
Feel free to edit this and make up your own variations or try a completely new style (this is 400% enlarged so if you shrink it to 25% it'll be 1:1 pixel size).