How is the string spacing? Are the strings far enough apart to finger chords comfortably? On such a small instrument, I wouldn't expect string spacing like on a classic, which is what I normally play, but I have no problem managing a steel string neck with a width of about 1 11/16", about standard for a lot of steel string guitars.
I use D'Addario EJ44s on my nylon string travel guitar (24 1/2" string length), tuned to standard pitch, and it sounds darned near like a full-size classic--a little thin in the base, but resonant, and with good sustain. Possibly with different tension strings, one could tune the uke-guitar like an "alto guitar": standard guitar tuning with a capo on the 5th fret. Lots of possible options.