The mountain vs farm thing is tough. Technically they both refer to domesticated goats. And the SoM theme is probably the single most recognizable goat-themed song in history. Scratch that, the ONLY recognizable one. I'm impressed that so many people recognize the source, although I guess the audience here is a bit older than other gaming communities.
Leg animation is being worked on as we speak (who knows if I'll ever nail it).
In terms of the food items - part of that is because it's a crude mockup, but part of that was intentional. Our classic games all had that "wtf is this supposed to be" look to them, and you really had to read the manual to figure it out. The blue thing is supposed to be a fish, btw - see what I mean?
The background... I've struggled with the background. I'm a fan of games where the gameplay is more important than the graphics. Too many games of that era (and later) go for way too much graphical detail, or accurate coloring, or whatever, but muddy up the screen so that it's harder to play. My original plan was to make the entire screen change color per level, a la Astrosmash, but it makes the game uglier. Not sure how well "all green" would look but it's worth a shot.
The whole death thing is obviously temporary. Blatantly ripped from nanochess's sample code with some noise added. I was thinking of blowing the goat into pieces (the sprite data lends itself to this already) but that would look a bit silly. Perhaps a Pac-Man style collapse animation...
And yeah - I've spent countless hours trying to simulate a goat noise on the INTV. Nothing even remotely close so far.