*chuckles* They look like Flat Stanley because they are kissing cousins of same.
The figures are flat because that is the way they are on the photoetched fret. In 1/700 scale you can get away with using these little guys, because even bulked up with some white glue or thick paint, they're still only about 1/8-inch tall ... at 1/350 scale, though, I agree that they start looking kind of silly, especially from less than a foot away.