Your re-edit of picture #1 makes a world of difference. The only issue I have of it is that the Squirrel is dead center in the picture. It would have made a stronger composition if you moved him more to the left. Picture #2 is just way too contrasty, and those bright highlights are really distracting. A slightly closer crop would also help to define your composition.
Joel, on the crop I did I don't consider that dead center. I took a ruler and measured the image on my screen and it is exactly eight inches wide. From the left border to the back of the squirrel's eye is four inches which by my estimate means at least seventy five percent or more of the squirrels body is to the left of center.
Jerry, yes, but it's the head that dead center. I have the same issues with a lot of my macro florals. I end up with the flower head almost dead center. Sometimes the compositions are more pleasing when the subject is totally off center. The final decision is the photographers. I know that I constantly struggle with that very issue.