Well, this IS a game from the same company that made Puzzle Pirates. It's not surprising that we've got peg legs everywhere. Yarr, loot and plunder the depths.

...On a more serious note, it might have been an intentional design decision to reduce polygon count. A top-down game places the focus squarely on the head and upper body; there's little to gain from adding a bunch of extra graphics requirements for proper feet, plus the peg legs fit in with the "almost like a chibi" art style.

"I pretty much mean when the foot is the same width as the leg"

Cankles?

Seriously though,

They do have little feet, it's just that the armor is so big it stops you from being able to see them in the 'battle' stance (and the top down perspective doesn't help too much either).

If you type '/sit', usually in that sitting position you will see their little feet poke out.