Thank you for all the positive comments and suggestions!
On another note, it's update time
Not all much to show, but I've recorded a video of the design so far.
You can view that here: https://www.youtube.com/watch?v=XhBPVli8Y8Y]
(I recorded the video before I made the changes. Also I'm not sure why the video doesn't completely fit the window)
Also I've decided to remove the torches and try to add some more decor. I also tried to make the background a bit darker, but I'm not great with palettes so any opinions welcome. Here is an image of that below.
I'm thinking of making the later half of the level in a cave and using the torches in the cave. I think it would be a better fit as using the torches to somewhat illuminate the cave.