that's fine. have it adjusted for 5 meters distance from first person, 100% accurate. make that a tiny . like this period.
If you're using first person then any crosshair is good, three-dots crosshair is already included in compatible mods thread (link in my sig). You can just change the color of it to whatever you like in Photoshop or any other program. Removing actual shrink/expand animation would be a bit cheating, I think.
About Meow's crosshair, I looked into the included .brf file and it has a modified Y axis (burn the hax), meaning it should work fine with some bows at certain range.
In reality it's not THAT bad, but where do you draw the line? Neon colored arrows? Neon colored weapons? Flattening bushes into the ground? Having a spikey arrow show the direction a player is facing (that pokes through walls), making the wall files transparent?
One of the reasons I never cared about comptetive Warband-playing, lack of any anti-cheat system. Especially in Native, where ranged is OP through the roof.