The part that interests me the most is actually your take on the UI cursor. The way it hints for interactable object with a natural transform in shape without having to change color or shape just feel oddly smooth. I can see how this design wiil be even more useful in games that uses single color aesthetics.
However, while I get you might be making this decision for the perspective (the closer the bigger), it feels a bit odd to have the dot "unfocus" to suggest interactablity while you are supposed to have your attention focus onto an object.
Also, putting the cursor as an actual game object in world space causes it to disappear if I run into walls. I suggest putting it into the actual UI Canvas if that's not intended.