you know you've shot a piece of crap when 95% of the non-insect entries get a higher score than your entry --- oh well, never underestimate the power of large numbers of ...
Out of focus. Sorry, but sharpening can't correct what isn't already there. You need to focus on the most important part of any subject: the EYES. Very lacking in color fidelity. Compare the grey scale below to your image; there is no tonal range. Damselfly is a good subject, though.
You sure did get close up and personal ... maybe a bit too much. While the composition is nice, the technical execution lets you down ... something needs to be in focus, and with living creatures, it's usually the eyes. A little contrast enhancement could also improve the shot IMO.
Hmm look at the legs on that. I really like this picture, but I have to admit that I don't recognise the insect.
You have achieved a very shallow depth of field, but I feel that your title is trying to draw attention to the eyes, which are slightly out of focus. As the legs are the main feature of the insect that are in focus, personally I feel that your title should have drawn attention to that as opposed to the eyes. Though I can understand why you tried to draw attention to the eyes -- they look wonderful.
In many of my recent insect shots I have found that I get slightly shallower depth of field than I actually wanted, and unfortunately this seems to have struck you on a particularly inconvenient image.
An interesting crop and nice composition. Like the border too.
This would be a ribbon winner if it would have been more in focus. When I saw the thumbnail of this pic, I had to laugh at your title and this little guy's big blue bulging eyes!!! What on earth is it?? :)