The hands should still be large of course, but yes, more around Adventure sized. And also yes, Modern!Knuckles proportions are comically ridiculous. You aren't going to get a full range of acting when he can't do anything with the hands other than hang at the side or do the grapefruit. Also, to echo everyone else sentiments, yes the problem with the stiff facial acting isn't the designs. Most Sonic characters have a baked-in default expression but that doesn't mean you can't break them out of it. Currently they just choose not to for some reason or another.