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Anything clickable for combat, such as buttons or in this case the target frame, cannot be altered while in combat. The raid frames adding people in combat is Blizzard's secure code, which is why they can change. There is very limited options for custom secure code, and moving/resizing is not included.
If you're okay with making a custom target frame that can't be clicked, then you can do whatever you want to it in combat. It could also be possible for a custom static frame with 0 alpha overlaying a frame that can't be clicked, so you can make it look like the target frame is clickable but can still resize visually, but that's beyond me.
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