I'd lessen the intensity of the purple glow a tad, and yeah, the water does kind of look like a mirror road at this point. I guess that's because of the crystal lamp that looks like it's "standing" on the water. Also, you might want to add another layer of waterplane doodads on top of the alpha tiles, to give it more of a "wave" look.
And yeah, remove those purple crystals, they're just eyesores. I also advice you add the rest of the roof behind the one you've already got, while it won't be too visible it'll give more of a depth feeling, as right now it's pretty noticeable that there's nothing there.
And then, I'd also advice you to add either another layer of mountains behind all the rest, or redo the furthest back ones so that they form more of a straight line all across the horizon, with only a little variation in height. Doing that will fix the depth of the terrain.
And the clouds up there in the right-hand corner looks off, try covering it up or spinning the cloudsphere a tad, so that the awful stretched part isn't visible.
Oh, and, would you mind uploading the next update as an attachment? It's easier to see everything with the auto-adjusting feature of attachments