Looks like Hanzo is going to get his fight. "Hanzo of the salamander" or whatever, and this guy summoned a lizard.

The nice part of them showing us all of his bodies means that, while we are almost certain Jiraiya is a dead man, Jiraiya can win a few times before ultimately being killed by Pain.

As far as the piercings go.... Pain seems like the practical type, I doubt they are just for looks. My guess would be that they are related to controlling the bodies, but not as antennas or anything that outlandish: thinking more along the lines of distraction.

I think all the piercings are there to cause a significant amount of pain and distract the consciousness of the actual body, allowing pain to easily control it from his own body with some strange jutsu related to those eyes. I hope Jiraiya likes that look, because if it is indeed Hanzo he is fighting then Pain may be a collector.