The best thing about Loki: Unlike most villains, I think he wouldn't mind being depicted in chibi form (especially if it means he's admired). Occasionally he doesn't even take himself seriously... much less his opponents.
I really, really hope Thor 2 will see him on the "good" side. The dynamics between him and the rest of the Asgaardians, not to mention any other hero that gets thrown into the mix, would be just precious.
I think that for all his trickery, he wants to win fair and square after all (although he has a different definition of "fair" I suspect). Out of the whole Thor movie, the only moment when he seemed to enjoy himself was at the beginning of his final fight with Thor. I see him as a challenger at heart, taunting his opponents and then enjoying the ride. It wouldn't be so much fun if he didn't give them a chance, now would it?
That said, I somehow doubt he really wanted to rule the Earth. Yes, it would be a nice "take that!" to his brother, but I suspect he only came up with that idea to negotiate his survival once he happened upon the Chitauri and company. Also, it was one of the only ways to return to any world he knew. After giving it some thought, I do believe he couldn't really lose unless he died. Either he would win the Earth, and pose as an equal force to his family in Asgard, or be taken back home. As a prisoner perhaps, but let's not dwell on minor details that can change with a bit of work.
its ok! Im sure you will manage sometime! Since i've seen some of your lovely works having hung out around you as long as I have. Just find something fun to draw and start working on a non-chibi and if you find a chibi coming on too, go ahead and draw that separately and get back to the other one LOL