The funny thing is, that is how many of the most interesting "official" action figures were created. Such as Stinkor being a repainted Mer-Man with Zodac's armor recolored, and Moss Man being a green Beast Man with flocked fur added. And Roboto, Man-E-Faces, and Trap Jaw all having the same legs in different colors. There are so many other examples.
If you still collect figures and like making customs, you should try the 2-inch Mega Construx Masters of the Universe figures. They are very detailed and posable for their size, and usually come in many parts that can be easily separated, so they are great for making custom characters.
I am going to keep an eye on your profile to see if you ever get a chance to make an updated MOTU game with character abilities and any other things you want to add. It's amazing that you were able to make such a cool game with such limited old-school software. Character abilities or any other improvements would put it really over the top. Although there is a lot of old-school charm in the Pico version. The place I work closed a bit early tonight, so I think I will relax by chopping off some evil MOTU warriors' heads right now!