Armor that changes the overall size of the character would be cool, personally i'm trying to make a short character, but when you try and make a small model the arms look detached and the head just looks like it floats if you move. I was wondering if it'd be possible to make those types of models in game now or if not could it be possible in the future?

This seems like the wrong mod for the job. Gulliver Reborn accomplishes resizing the player and doesn't affect the ability to wear Armourer's Workshop items.

I agree here. This is out of scope.