I was somewhat inspired by Lionhead's logo, when it comes to color, positioning and symbol in rectangle.
The logo has to work in every combination: both symbol and font, just font, and just symbol (in that case, I think horse will have to be inside rectangle, so that floating in space horse head doesn't look offplace).
sunandshadow, blank eyes come directly from The Nightmare painting by Johan Fussli:
And I think they really make this painting. Long streaming mane... I can't do nice hair
Cornstalks, yes I think you're right about pixelated/vector thing. It isn't supposed to be retro-pixel, maybe only a litle old-school. So I simplified horse, made him little less white. I polished/antialiased the font, gave it a subtle gradient, also reduced the glaring white border. How about now?
What should I do with the font, I think it still misses something...
Kosh (in reality: kosz) doesn't mean anything in polish, it's inseparatable part of "koszmar", just like "sham" is bound with "poo", or "spagh" goes with "etti"