The scaling issue is a 3rd person, or better described as the roving camera problem. It is better here in that the camera here is not a quite the steep angle you see in SL. That steep angle is why avatars in SL are usually 7 feet and why furniture tends to be nearly 2x RL. The real problem is that the roving camera needs to be smarter. It needs to duck down when n avatar goes into a place with a ceiling.
Or, thinking further into the future, help us all stay in 1st person mode by providing mirrors. We need this in HMD mode. everyone wants to see themselves. Mirrors will help alleviate that narcissistic itch. Mirrors will also bring more people in to HF.