Both the Hobbit legs and the Woody legs will always look off proportionately to the torso. That's because the torso is made proportionately for the default leg size, and shortening or elongating that size by essentially halving or doubling it will, obviously, just not look as good.
The power of the Toa is a mantle given to Matoran. They do not become Turaga when that power is taken away from them, they would revert to Matoran, much like Thor without his hammer. But the mantle is generally only given, not taken away. The Toa's mantle would be passed on if they were needed and the previous Toa were dead.