Its been brought up before, at least in regards to antiquities but its been an issue from the start. I don't know who makes the decisions about how big something is but it doesn't seem to be taking into consideration the size of the players. When a mug of milk is as big as your freakin head, there's a problem. When a tea cup is the size of a soup bowl, there's a problem. Giving us the ability to scale the size of items would fix that, especially with the extremely low limit on housing furnishings.
We know ESO has performance issues. We suffer through them. We know that house furnishings are limited because of the impact on game performance. ZOS seems headed in the general direction of improvement with their attempts at overhauling bloated and overly complex systems but we also know that housing is not a first priority. Consider your whales though, before they become extinct.
Of course, I have no idea how difficult it would be introduce and I dont know if it was even considered from the start. I know other games have the capability. What I do know, is that housing is one of the few enjoyments left for me in this game after playing for years and its also a constant source of frustration for me, especially after my housing experiences in Rift and SWG. So I'm hoping it could be consideration or a possibility.