The color change doesn't bother me nearly as much as the change in proportions. Insetting the face on the right and removing its curvature makes the smile look super weird and less "human" to me. I'm sure I'll get used to it, but it feels a little off.
My theory is they straightened it out so it looks almost like half of a representation of a house, i.e. Finder helps you find and organize things in your "home".