I really like the addition of the cape and the logo @danmaruschak ! I think we all need a superhero in our lives.

I thought it was funny when you wrote :

the head-shape is reading more "otter" than "superhero" to me

I also like otters so your design would just need the addition of a tail and the right colours to make it a super-otter.

By changing the colours and perhaps a few other details you can make all sorts of characters either superheroes or not. For instance if you determine where the nose (or ears) will go in advance, you can make a half treble there instead of a single crochet to make the features stand out.