You know, there's a lot of potential here. Don't rush him. I think if you learned a few more tricks and let your imagination bring you a few more ideas, he could be a pretty fun character.
Definitely sprite more. The more sprites and movement you have, the more cool things you can think of for him to do. The walk needs work. I know they can be tricky, but I think you can do it!
I like his eye blast, but I think it needs to be a projectile, even a beam.
Maybe a hyper with other Morlock helpers? I dunno...?
Also, did you ever consider using Benimaru as a base? Something about this one you have now makes him seem... smaller. Here is a poor excuse for a example I did really quick (Yes I know the arms are weird)
Keep working at it! So far, so good.