'Stuck In The Same Place I've Always Been...'

Ok dude. This is pretty good. 

But dude, please, you gotta stop using the tools for pixel art.

Now, if you were making Oekaki, then sure, but don't use the pen or any other tool besides the pencil when you make pixel art. 
Why is that?
Because the lines the tools make look really bad up close, and remember, in pixel art every pixel is like a tile in a mosaic, and should be placed with care and precision. The pen and other tools use algorithms to choose colors for you. They were not made for serious art like those in PhotoShop.
So don't use them.
Also, don't use the text creator. 
Here is a tutorial on pixel art from OpenGameArt.org
opengameart.org/content/chapte…

The problem here is that the computer followed the coded algorithm to make for smooth text...but not on the scale of 8bit pixel art!
It's for art that's about the size of a normal image, it's for Oekaki. So when it's shrunk down to such a tiny level, all of it is anti-aliased dookie. 
So, instead, do it yourself. So, you're trying to replicate text out of a story book. Make the text one solid color, and make a secondary, darker one to give more substance.
For the ribbons, just draw out the outline using color, and the folds using a much darker color. For reference, look at the colors of Protoman's Scarf in the Megaman 5 intro screen. Look at ribbons. Use a reference. It'll be fun for you.

I have an idea. I'll just show you with a submission. When I get it done, I will link you to it.

To be able to render thing better, study their texture. You can't simplify down the details if you don't know what they are.
For a beginning work, it is impressive, but there are many more aspects in which you can improve.

And also, what is your aspiration in making art? I'd like to know.