Human fighter: weapons, armor, gear default to MEDIUM. Dagger: 1d4, 1 lbs. Leather: 15 lbs. MW Backpack: 4 lbs. Total carried: 20 lbs.
Gnome fighter: weapons, armor, gear default to SMALL. Dagger: 1d3, 0.5 lbs. Leather: 7.5 lbs. MW Backpack: 1 lbs. Total carried: 9 lbs.
Aasimar fighter with permanent -1 Size Category adjustment: weapons, armor, gear default to MEDIUM. Dagger: 1d3, 0.5 lbs, Leather: 7.5 lbs. MW Backpack: 4lbs. Total carried: 12 lbs.
So, there is a problem with "gear". Also, the weapon size is confusing. If I am small, then I need small-sized weapons (or armor), just like when I pick a Gnome. Yet if I am not officially small but just adjusted, then small is relative to my adjusted size. I need medium weapons, and if I select small, I really get tiny weapons marked as small which I can't use.