Just thought I'd chime in as another instance of the widespread anecdotal evidence of height loss on hrt. In my first year on hrt, I went from 5'9' to 5'7' 3/4. It's a difference I can see and feel.
There has also been another psychological shift that might have had little to do with changing physique. About four months into my treatments, I noticed for the first time that women around me felt like they were my size even if they were a bit smaller. I didn't realize it to that point, but I had always experienced myself as larger than women I was around, even if they were my same size and perhaps even larger. I have no explanation for this perceptual shift except that hormones really do make us experience the world in a different way.