1 vote for shrinking i hope we find out one day that beyond the edge of the universe. We are inside a man that works as a Supermarket Cashier that looks a lot like a young Martin Short.
Expanding means that the objects (stars, galaxies and stuff) are moving further apart, not that any of them is growing on it's own. Think of a raisin muffin. Before baking all raisins are relatively close but at the end, they moved further away. It's not that "the other" raisins grow, they are just further away. What grow is the space between them (or dough to stay in the metaphor)
Big, huge, unfathomably large structures in the Universe, such as galaxies, are measurably expanding away from each other.
The atoms that comprise your body are not measurably shrinking.
We are not shrinking. Astounding large things that are very far away from us are generally getting further away from us, and other astoundingly large things.
To further the raisin bread analogy:
The raisins are not shrinking, the dough is expanding, making the distance between the raisins increase.
Shrinking would require multiple physical constants to change. Even worse, they would have to change in perfect lockstep. Any deviation would radically affect chemistry.
Not that I’m an expert on these things but don’t we have a limit on smallness, the Planck length, but not necessarily any limit on how far apart two objects can be? Things moving away via the expansion of spacetime would be able to continue unbounded, but shrinking not so - not without the laws of physics becoming meaningless.
You can still say that spacetime expanding is the same as us shrinking but then you’re just into semantics and sure, you can call things whatever you like.
If we were shrinking galaxies that are further away would appear to move away from us at the same rate as closer galaxies. That is not the case. The further away something is the faster it moves away from us. This is very well explained by an expanding universe. Us shrinking doesn't fit the observations.
This was a challenging one. Sorry, I just enjoy enjoy going down these thought rabbit holes. So the only thing I could come up with is if there were areas of localized shrinking the light furthest away from us has a higher probability traveling through these zones.