The finished shot looks really good, as far as the movement goes. It's a fairly believable walk cycle. Might could use a tiny smidge more heel-toe roll per step.
There's something about the gravity of it, though, that seems a bit floaty.
I wonder if there is some way to support the hips on a bungee cord or similar apparatus, so that the weight is actually down on the feet and not defying gravity because of that puppeteer's hand?
I also have to ask, how often will the character be in a shag carpet environment?
Can this technique be translated to other floorings, and if so what? Linoleum tiles with the tracks hidden in the grooves? Long-bladed grass?
Anyway, those are just some first-viewing reactions. I love the fact that you cited Sy Snootles in its development. As a lifelong Star Wars nut, I should have thought of that, but I admit I was thinking more of Tom Savini's Fluffy creature from Creepshow, and the trick they did with the sliding flooring/carpet so that a second puppeteer could operate the feet.
Keep up the creative solutions!
Alex