I can see that you don't really get what people need to comfortably use chat service.
* You need to have at least
3 bubble colours: grey (offline), orange/yellow (away or mobile), green (online). It is very important to people to clearly see the status of their chat buddies. EVERYBODY I know complains that they can't see this in new Hangouts. Literally everybody.
* Statuses are just as important as pictures - make it like it was in Google Talk (why you dropped Google Talk instead of improving it, is beyond my capability of understanding).
* Moods are good idea, but allow text descriptions too, like it was in Google Talk.
And better yet, make it look like Google Talk, just call it Hangouts and I will be happy.