Yes to this!! There's no reason as to why this can't be added; Second Life lauds all walks of life from all sorts of heights, from tinies and petite faeries to supermodel-worthy fashionistas standing at a striking 7+ feet tall, and beyond. No avatar size should be at a disadvantage in KittyCatS, everyone should be free with the ability to cuddle and hold the kitty that most compliments his or her avatar appearance.
I too collect (mainly) toys and I long to one day cuddle and hold them, and it would perfectly work with my avatar's proportions. Having the 5-day old toddler size (Petite) is a wonderful and a very generous implementation on KC's part, but it doesn't work for avatars even smaller who would look ideal with the size of a teacup or toy kitty being cuddled in their arms not to mention those who have already accumulated a cattery army of mostly tinier kitties. I want to smother my toy kitties with plenty of love already and hope this suggestion becomes reality one day.