Hey Jed. I think it sounds really nice melodically. I think the tempo could and rhythm could be seen as western-y (horse riding) and the tambourine sounds reminds me of spurs which I really like. And I like when the instruments are obviously sampled if that is intentional it reminds me of old computer games.
So the games art is simplistic then I think that sort of thing fits. If its not supposed to be intentional then yeah guitar is hard to get right. When I use samples I use this company's
https://www.orangetreesamples.com/But I don't feel like the melody on its own is very western-y and the tempo, melody, and whistle (which could sound like a pan flute) reminds me of music from the Andes and a little Caribbean (pirate game music) too.
I'm too not versed in musical terms but I'd make the melody less happy<-? IDK more minor or pentatonic based. Sorry I don't know how to say it.
I am working on a western OST right now too and here are some things you can use to spice things up. Solo trumpet, whip cracks, tremolo guitar, vibraslap, shakers, slide guitar, old rusty sounding steel string guitars, old sounding electric guitars, detuned piano, more vibrato on the whistling, and tubular bells.
Best of luck!
Also at 1:49 you seem to have an audio glitch.