No, it's pretty much only you who's out of his mind.Did you see mini Diablo (pet) in WoW ? It looks the same also. It's simply a mini cartoony version of D2 model...
In fact i like D1 model much more. He was like the Devil in D1 (more humanoid). In D2, he looks like a lizard type demon.
In D3 concept art he (or she) looks like a fragile female demon. If they actually consider modelling that concept art into the game, then i can say for sure, they're out of mind.
Little known fact: One of the main influences on the D2 version of Diablo was... the Godzilla in the Godzilla 2000 remake. Who was a mutated iguana. Hence the more quadrupedal movement and posture.Lizard? I always associated him with a doggy for some reason. Must be his charging animation.