I say redesign, here is my reasoning:

• The design does not flow. Too many elements crammed in, filed with many different patters and gradients, try to add more white space and make it a bit more simlistic.
• You use far too many cliche design elements. I mean seriously why do you have scissors with dashed lines to separate content, stick tape and curled corners?
• Visual hierarchy is not great (some tips in this article). This also ties into the design not flowing. For example the logo should be the first thing which jumps out but really its small and disappears. Basically nothing noticably jumps out and there is no clear structure.
• You have images of your latest work twice? Not really much point.
• If you want to appeal to offline customers, people new to the internet I would suggest making the design more business like include: phone number, pricing and some more text explaining the services you offer.

Basically the design has a lot of problems. It may look good as an image but when used as a website it just doesn't really work. I suggest if you do a redesign to make it a bit more simple, structured, business like. Anyways please don't get too disheartened, you asked for reasons and I have simply given what I believe to be the main problems with the design.

You definitely have the photoshop skills/design skills to pull off a great template.