For reference: http://code.google.com/p/chromium/issues/detail?id=71937
Basically, the issue is that if you scale an iframe, the bounds of the contentWindow of the iframe get the scale modifier applied twice. So if, for example, you scale a 100x100 iframe by 50% (style="-webkit-transform: scale(0.5, 0.5);"), the new iframe bounds will be 50x50 but the contentWindow bounds will be 25x25. The actual content is correctly scaled.
I tried setting the innerHeight/innerWidth of the iframe contentWindow and while I was able to update the property, the contentWindow's visible bounds did not change.
Any input welcome, thanks!