It does look more realistic if you want some sort of a shaggy look like the custom vans of the '70's, if you look at the 1/1 carpets not only now but always, you will see they look a lot more like the first picture than the second.
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If you look at that heel pad, it would pretty much buried under all that shaggy carpet. I do understand that I might be exagerating a bit with the shaggy carpet but, think about it; If you were to convert a flocked interior 24 or 25 times bigger, it would definitely look like that shaggy carpet.