Honestly I kinda get how Tatsuya feels.
I'm also surrounded by some incredibly talented people with no matter how much I competed I could never even get close. It crushed to the point that I finally stopped even trying and I could never really recover from that.
It's all about idiot scary guy and tiny girl now, gotta drag up interest in the least liked characters I guess?
Unless author goes full on harem there's no way readers would accept tiny girl right. Even if they just went on one date and broke up people would be annoyed.
And scary guy is basically the readers enemy, no redeeming features so far. Maybe his life isn't all sun and roses, but why should we care.
The "personal issue to be resolved" in the first arc is with the scary guy (Tatsuya). Main heroine and tiny girl both fall in love with MC, and MC has to choose between them. Obviously main heroine wins, the confession scene is pretty good.