The waves should be smaller, flatter and more "dispersed" and reflect less sunlight when the POV is at high altitude and when the sun is in high angle. Currently the waves morph together and reflect too much sunlight, making the sea look like a plastic mat and the ground look a lot smaller than what it actually is. The game world looks smaller because we automatically estimate our altitude by looking at the sea, and because it's rendered incorrectly, it gives us an illusion that we're closer to the sea than in reality and thus causes the game world look smaller.