ad 1.) There are three different pics to be increased and positioned correctly to match each other. The image itself, its footprint and its civ colored object set. Here the civ colored object set ahs not been increased and is at its former place.
ad. 2.) Units walk thorough on the lower part of buildings and walk on the farms. They also can overlap until they original sizes attach.
ad. 3.) Buildings merge into each other.
All in all, despite the increased size this unit-to-building ratio does not pose placement difficulties as compared to the original version. It looks even much cooler, since just created archer for example stand inside the compound. Not to mention the farmers, who till the land standing on it.
I think this size ratio delivers an almost real feeling without the drawbacks of the increased size. The village almost looks like a real one. It is a lot more fun to destroy such a village and even more exciting to defend it. I like this better than the original.