Nah. It's not horrible. Mollymutt is just looking for feed back on a particular texture. There isn't much else going on.
That considered, it fits. I think it could do with lets grit, but it deffinitely fits the pallet MUCH better. I believe Harvet Sun's issue lies with this texture being a fairly generic earth texture, where DK had more organic 'rock' textures. You can use this as sort of a material, but paint in the rock surface. The effect should be to generate the illusion of more geometry than there really is, not simply illustrate there is a textile feel to the surface. What you have currently depicts very small geometry, which is good, but it destroies the idea there may be more substantial geometry than what was actually modelled in game. Compare HL2 to Doom3. Though both games utilized similar texture sizes, most everything that had substantial geometry was actually modeled and rendered in three dimensions. HL2 took a more old school aproach, where whatever they could get away with describing as a 2D texture on a 3D surface, they would. Windows, doorways. All of this was as flat the wall they were painted on. From a distance, they look great. Get up close, and the illusion is destroied. Since N64 games don't afford us the luxury of simply modeling all of the real world details we would like to include, we have to fake them in the textures.
Let me try and find you an example...
Here is largely what you're doing
http://www.azontherocks.com/photos/AZR Construction_86.jpg
We see the geometry of this climing wall clearly. The ply wood being used to construct the face has all sorts of TEXTURE, but there is very very little geomtry on our scale. If there was enough geometry, a flat 'texture' would be appropriate, and furthermore, the term would be acurate, because you are finally using a texture to... add texture.
In contrast
http://www.emutalk.net/attachment.php?attachmentid=25576&stc=1
An original from DK, and while the surface loses a lot of actual TEXTURE, it does have a degree of depth within each 3D face of the geometry. This masks the simple geometry these textures on painted onto. Nah, not by much, but it helps, while making the sense seem more complex three dimensionally.
So try and illustrate, or create the illusion of more geometry and shapes on the flat faces than there actually are. If you want grit, rough, or any of these other micro tactile illusions, you could just as soon use a more traditional texture map in a blending layer, or apply filters galor, though both are probably going to destroy a lot of the faked geometry you worked so hard to make.
Suggestion for execution. Work general to specific. Try making a tilable texture that isn't much more than 4 or 5 colors. Map out geometric shapes. Rectangle here, triangle there. Go all out and make a nice polygon of however many sides are necessary, but keep these shapes of color as simple as possible. Think like you're painting a cartoon rock. Try your best not to get caught up with making a crack look really neat. Just try and get a form that looks three dimensional in TWO dimensions before you worry about any of that. Once you get a neat super simple texture that works, dive in and add all the flavor you want. Cracks, knicks, scratches, moss, mold, or just some basic texture to make what probably seemed like sliced up chocolate look more like rock.
Good luck. I'm sure you'll get the hang of things before long.