btw, while are at comprehensions with kobolds (or at least me^^):

Draconic Rite of Passage lets Kobolds take a single 1st lvl spell as SLA for 1/day with clvl = character level.

So, I really don't see your 3/day reduce person till combat start becoming problematic. Sure being tiny gives you some skill bonuses and allows you squeeze into small spaces, but how often will that break the game? Imho not so often.