I made a rough example of what I want to achieve using hundreds of AnimatedSprite nodes and scaling that triggers when the player enters and exits their detection areas. This performs very badly, doesn't utilize physics, and crashes my game when I make areas much larger than shown, among other issues.
I think redoing this feature with shaders would be a drastic improvement. If anyone can help with this, I'd greatly appreciate it! In the meantime I'll be studying them to see if I can figure it out myself.
Example here.