Tbh thoughts on this hasn't really changed

Still think he does and that cute squirell coming into the picture only soldifies it lol
Oda is gonna milk the shit out of squirell merch wise
Also, can't really imagine Loki ruling Elbaf tbh and I'm skeptical that the truth of the events on Aurust Castle will be revealed to the people of Elbaf. Yes it was Harald's wish for Loki to reveal the truth to the people of Elbaf and ascend as King but Loki decided to protect the memory of his father adn take the blame instead

and I reckon Hadrujin will respect Loki's wishes on this in which case, Hadrujin will most likely ascend to the throne after this arc is done which I think would also be more ideal with regards to direction Harald wanted for Elbaf in that and Hafling ascends to the throne. So all of that pure bloodline nonesense will end.
Anyways on the size ting, don't forget that the mythical zoans have special abilities. If Fenir can manipulate his size and become as large as he wants to be then he can probably also shrink it.