Very interesting and a working joke.
(Note: Semi-demi spoilers below, but not that major.)
The animation in this flash was on the same par as your James Bond spoof.
Although I like the Lock Legion a lot more than the Clock Crew, I thought they were more the peaceful sort. Would you two really fight for supreme 'Lock based on popular game character' without some big fight with words first?
I think this would have been better if you started it with, say, CloudLock declaring that he is the supreme 'Lock based on popular game character'. Then KnucklesLock comes up and says "no, I'M the supreme 'Lock based on popular game character'.". They then start flinging insults at each other. Some other lock - I don't know who - suggests they fight, which they agree to do.
Then, for killing KnucklesLock, CloudLock gets exiled from the Lock Legion and goes back to all the Final Fantasy games, rounding up characters for his 'Final Fantasy Lock League', including such powerful Locks such as 'AerisLock' and 'BlackMageLock'.
Angry at the Locks for exiling him, he leads his locks up against the Lock Legion, and marches them out of Final Fantasy to the Lock Legion HQ.
However, belonging in their games and not being used to going outside of them, the Lock League easily falls to the Lock Legion, weak outside of their proper games.
The Lock League abandon CloudLock before they can get captured, and run back to their games, in pain.
CloudLock is captured by the Locks, and taken to the deepest dungeon of the Lock Legion HQ. There he ponders what he has done, and, in court the next day, pleas guilty and asks for forgiveness.
Forgiveness is denied, and he is hanged the day after.
The End.
Overall, a nice joke, fairly good violence for not having lots of blood and gore - just a tiny bit of blood.
The ending joke was quite good.
Now, wasn't that suggestion cool?
I think that was my longest review ever.. as of right now, at least.