It is a bit creepy. I think the thing is that it looks so child-like. They should also work on the enormous bulging eyes. But I suppose that that's to highlight its expressiveness...
This also brings up the
Uncanny Valley, and how it applies to our views of what is creepy or not. The developers of this sort of thing should realize that people are very uncomfortable with realistic simulacra of human beings, and should go for an approach that make it appear less human. After all, expressiveness is not necessarily dependent on how realisticly "human" something looks. A simple cartoon character or anthropomorphism would suffice.