There is no mechanical difference between being 5' tall or 7' tall.
I don't know, I remember a character not being killed after he mentioned to the GM (after he rolled damage) that his character is clearly stated on his sheet to be 4'9" and the trap that was supposed to shoot him in the head was described to be 5' high.
It's Eberron, not ebberon.
It's not high magic, it's wide magic.
And it's definitely not steampunk. The only time steam gets involved is when the fire and water elementals break loose.