The addon "ScrollingCombatText" used in conjunction with "SCT- Damage" is what I used to solve my problem. They have adjustable fonts/font sizes for the text damage, but in addition to that it doesn't use the same method the in-game combat text uses to scale its size (based upon the resolution), and as such it is at a "normal" size by default. The mod is highly customizable, and I prefer it over the normal combat damage text even when playing across one screen. Both addons are needed, as the first mod only replaces in-coming damage/healing, "SCT- Damage" replaces damage/healing done to mobs/other players.
I found them on curse.com.
http://wow.curse.com/downloads/wow-addons/details/scrolling-combat-text.aspx
http://wow.curse.com/downloads/wow-addons/details/sct-damage.aspx
As far as the large text over the mobs (names), I know of no mods to change that. There are a number of nameplate mods out there that will work, such as "Aloft" and "Threatplates." I think they can be found on wowinterface.com, not positive though, I haven't played WoW in a few months.
You'll probably also notice that chat bubbles are abnormally large as well, there is no fix for this either, as far as I know.
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