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Not true. right from the get-go, you could still adjust your hero's height and general physique with the appropriate sliders. It's only the fine tuning of individual areas that was introduced later.
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I recall when COH first debuted there used to be hordes of micro-heroes, people who had scaled themselves as tiny as possible...
Since the animation of running went faster when small, somehow a rumour got started that you actually went faster as a tiny person.