It zooms out...but I don't mind.
In fact I kinda like the camera as a whole in the game...no adjusting or fussing with it or having to use the scroll wheel to zoom in or out, or the infamous screen edge to turn....just a simple mouse movement snaps it where I need it.
I can understand your frustration with the limited range of the camera...and the zooming out while looking down is kinda wonky.
But it still doesn't bother me enough to deter any satisfaction that arises while playing.
I just don't notice it after awhile..
Sorry to hear it really bugs you though.
Peace..
