Hi Foster.
I am only slightly less vertically challanged than you and only weigh ten stone. My 3" 696 hides quite well. I would be leery bout bobbin the barrel down to 2". With the 3" barrel it takes a fairly heavy charge to get big bullets goin fast enough, I think the 2" would have more negative than positive effects.
A word of caution, extremely rapid fire (ala McGivern etal) will cause the timing to retard. Heavy cylinder, heavy cartridges, stainless parts etc are not conducive to longevity when all that mass is started and stopped rapidly.
I got mine used, original owner put a lot of time and bucks into it and lost interest. Seems it was one that came down the line when QC was out to lunch. I did a tad bit of buffing and am very pleased with it. Very accurate with the right loads, sweet trigger and stone reliable.
I would suggest lightening the trigger return spring and leaving the hammer spring alone. Especially if you are going to bob the hammer. When bobbin it, recommend leaving a bit of a lump, maby eigth of an inch or so, of the base of the hammer spur. A tad bit of extra mass to help the strike.
Sam....any hole is good, big holes is gooder. Big hole in right place is goodest.