Perhaps you should think of the -10 not as a modifier to the Attribute, but to the roll.
So I am Small 12 -- when I try to augment or perform a feat with my Small I have to roll a 10 or under
But if am in an Alien world, then I have to roll a 2 or under to do an augmentation, or to performa a feat of some kind.
It's not that do not still posess a heafty quantity of smallness. It's just that it does me less good in an Alien world.
So, Arelia, a Pixie devote of Aldyra is forced to journey into a Darkness realm. She is still tiny (Small 12), but if she choses as an action "augment my fighting abilities with my tiny size," the narrator can respond "In the hideous realms of darkness, fear makes you less nimble. The dark miasmal mists of the night slow your flapping wings, and knock down your little darts (in otherwords, your Aumentation roll TN is 2 -- a very bad situation indeed!)
In short -- apply the -10 when you have the opportunity to make the characters' lives miserable. If you cannot logically justify a penalty to the players, then think of the -10 as a bonus that the opponents get.
> Look how tough you'd become in a -10 Alien world
> Small 2, Easily hurt 3, Haemophilliac 7 and Frail & Gaunt 3 ;)
>
> Here in the Spirit world your size is less of a handicap, and the
> threats are less physical, so your susceptibilty to pain is
likewise
> reduced
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