Since SetScale(int akScale) doesn't affect the resized objects' collision data (a giant chicken or tiny dragon using this is still considered to be "really" it's original size) - would it work to make a copy of, say, the player's model, and apply it to a shrunken or enlarged version of his race, and have it look the same?
For example, make a race for each existing race called "*_MiniMe" and "*_GiantMe"that is basically a Scaled version of the full sized race, and then change the players' race to Breton_Minime if he or she is a Breton getting shrunk, Altmer_Giantme if an Altmer getting grown, and so on...?