Yeah, this is definitely smaller and more to-scale. Not larger. Believe me too, it's more than "slightly" overscale. It's pretty significant. The right size should have it not be much larger than the cockpit of a Y-Wing (done to scale, of course). It's a tiny vehicle by SW standards.
Much like the AT-ST, this was one of the most out of whack vehicles visually to me, that was very doable by Hasbro. Of course it's no Sith Infiltrator, but that wasn't going to happen "larger" anyway I guess.