Admire how you've managed to squeeze a quart into a pint pot, Matt, but retained the appealing sinuous effect. IMHO it looks protypical.
Of course, a short loop such as this at a terminus - always the exception to the rule as somebody may well point out - would have been extremely unlikely as you know. However, you can always cite modeller's licence, and I've no doubt with your artistic flair, you can make it 'look bigger'.
I've experienced the very same struggle when designing my proposed Cameo layout 'Seacombe' which in reality had only a part of its run round loop before a girder bridge crossed the line, as per the usual useful scenic break on many terminus to fiddle yard scenarios. Due to the rules, land will be at an unprototypical premium, and will probably end up with a single coach scenario such as yours (have you seen the length of O gauge coaches?) despite in reality, having a three-coach length in this space.
In this context, I've decided, rightly or wrongly, that Cameo translates as shrunken, therefore, I will have to accept that either the loop has shrunk, or just build shrunken coaches!
Sorry to go off at a tangent, but hope it serves to illustrate that you're not alone in this.
Yep. I say go for it.
Bestest,
jonte