neat effect i suppose, but i can't imagine it looking very good in-game. doesnt this go against the whole style of pixel art, being aligned to a grid, low palette colors and keeping the same pixel resolution throughout? i see way too many things that change pixel sizes even through the same sprite. i think this would be better suited to larger svg or even pre-rendered images.
I had the same thought. If it's meant to look cartoony it might be better to just deform a simple box/balloon and map that to the sprite. This is worthy work, I just think it's a little too realistic for the whimsical context and ends up failing to satisfy either criterion.
I wonder if perhaps you're not overlooking the trees for the forest here - maybe this effect doesn't apply too well to an 8-bit shooter ship, but there are certainly ways this effect can be utilized in other interesting 8-bit/pixel-style forms. Just adding structural deformation to a platformer, for example, opens up all sorts of interesting new dimensions - between the blocks. Sort of like Gish, I would suppose, and games like it ..