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Made an account to say wow. Just wow. I'm really happy you're working on this mod. Mitsuo definitely has mad untapped potential, him escaping from reality with videogames equaling all of us playing Persona and all. Even if he got the 'Namatame treatment' with him appearing once, then twice, then never again, his issues were always there. The long "AAAAA" upon entering one of his floors, too...
Poor dude. It's a shame they portrayed him as this hopelessly hideous being, both physically and socially. Just like you said, everyone's more lenient if the bad guy is attractive (I've seen that happen *too much* in Danganronpa groups), so seeing him looking healthier and humanly for a change fuels more my need to see or even make an AU fic where he swapped places with someone and became a party member with a social link.
Anyway, even if I think 'little less terrifying' is a huge understatement xD, I really like how this is turning out. Your video makes good editing look too easy. I wasn't expecting the longer hair and hairclips, but it's like they fit him even better! Though at first I thought they'd be an IX like his Shadow's Arcana.
I can't wait to see the rest of his sprites. Best of luck!