The trees in this game are already dynamic in that they grow and change height over time. I think you could take it one step further, though, using inspiration from a little known minecraft mod called Dynamic Trees. It basically overhauls how the trees look but keeps them faithful to their core shape, though in my opinion it does well to do away with large, tacky trunks. Rather, the trunks in dynamic trees thin with height just like real trees, eventually separating into branches.
I think this tree design looks much better and would really help this game garner that more realistic aesthetic it's going for. For me, the juxtaposition between the finely detailed objects we can build and the thick, blocky trees in the environment is just really jarring. Truly a vestigial feature of early block game sandboxes.