The improvements you've made really work well. I like how the shape of the sword makes the shape of the ear. The texture behind each of your badges is really nice as well. Where did you get it from?
Not sure if you've heard of DRAWings Embroidery Effect, it's a program that makes vectored artwork look embroidered. I've used it a few times and you can get some really nice results.
I made the texture myself. I've done a few embroidered looks for crests, but for presenting them like this I like to give the crest as 2d a look as possible. It really shows the details well.