Is there a way to install this without the increased pickup area?

yes, see mod setting

no settings of this mod in the game

in minime

When using this mod, pickup distance & reach is increased regardless of minime settings. Also applies to https://mods.factorio.com/mod/miku-bikini-swimsuit
Other character mods using minime are not affected by the increased pickup/reach range

Pickup distance still not affected by minime.
Distance is so far, mod make game unplayable.

I figured out that there are changes to the distance values built in in the mod itself. You can fix it yourself, if you do the following:
1) Navigate to mods folder (%appdata%/Factorio/Mods)
2) Find and open the mod archive (genshin-impact-skin_4.1.0.zip)
3) Open the "character_creator.lua" with any file editor like notepad
4) Find the "Character" category and REMOVE all the lines that have distance to them
5) Save and update the file in the archive

With this you will have vanilla distance values for pickup, build, deconstruct, etc (depending on what exactly you remove).

I have no idea why these values are tempered with in this mod, but this is a workaround