Great job! I think this level idea has a lot of potential. I think it would need to be decorated a lot more and be more challenging. So I say yes make a full level out of this!
A bit more features and this could be epic :D
the level itself looked shabby, but I'll let you off since this is a tech demo. I liked the similarity to Sackboy with facial expressions yet it was still original, I'd be looking forward to this being a full level