I think the portraits being the way they are makes a little more sense when you consider Relogic's website team portraits.
Not a defense of them, I don't like them. I think the problem is that their very existence takes away from the wonder behind the NPC's, its like those "Minecraft in real life" pictures, it just doesn't have the same feel, I guess. Its too "soft".
Some of them, like the Arms Dealer, don't even match their actual sprite, and then you have the Angler who has zero malice on his face and if I know one thing about that little goblin it's that he finds joy in watching people actively suffer. None of them look like how ANYONE thought they WOULD look.
There's no more personality in their appearance for me, instead one plopped down for me by the developers. Everyone had their own thought on what the NPC's looked like in a more detailed setting, that's why there's so much fan art (good fan art at that) of the characters to being with.
Is it supposed to make me care about them more? It's hard to care about characters who actively tax and berate me despite me provide free shelter for them, and who'll likely get insta-gibbed when the next Blood Moon hits or I summon the Destroyer. I'm not playing Stardew where I actually HAVE to give a crap about them or think of them as real people.
It reminds a lot of the lore that they decided to shove into Terraria, it's nonsense and does nothing but take away and established pointless boundaries that never needed to be there. Except the lore was pretty easily ignorable, these are just in your face now, permanently! Less is more and all that.
Honestly I think the updates pretty good besides this and replacing some boss music, just utterly dropped the ball. Gee man, if you had to be derivate, why not just go back to your roots and do realistic portrait sprites like Final Fantasy did?
Which, that's another thing, if we're not being realistic with the NPC faces, why are we doing that with the pets?