Alright, let's start saying that your assumption to apply real world physics to explain how unexplained spell effects work isn't going to work very well, specially in D&D/Pathfinder.
Now, Pathfinder has an two unwritten rules that say: "unless something says you can do it, you can't." and "specific rules override the ruling of the generic rule; and when lacking a rule, use the general ruling". As I said, those are unwritten (yet commonly accepted) but will help you a lot when reading things as written, and I need to mention them to further explain my case bellow.
Now, let's tackle those illusion spells that cause so much confusion at every table.
The spell description usually says what can be seen, anything else you should check the rules for Illusion in the Magic chapter, and if it can't apply, the general rules for spells (you would be surprised how many people actually incorrectly use certain spells by ignoring that).
Illusions says:
Illusion spells deceive the senses or minds of others. They cause people to see things that are not there, not see things that are there, hear phantom noises, or remember things that never happened.
Disguise Self is a glamer effect:
Glamer: A glamer spell changes a subject's sensory qualities, making it look, feel, taste, smell, or sound like something else, or even seem to disappear.
That said, we can see that even being an illusion, Disguise Self would actually make you feel like the illusion is real if you fail your saving throw. But in the case of Disguise Self, the part about tactile (touch) and audible (sound) perception isn't changed like normal glamers.
As for disbelieving it, Saving Throws and Illusions (Disbelief):
Creatures encountering an illusion usually do not receive saving throws to recognize it as illusory until they study it carefully or interact with it in some fashion.
A successful saving throw against an illusion reveals it to be false, but a figment or phantasm remains as a translucent outline.
Notice how glamer isn't listed here? So you don't get a translucent outline at all, it simply disappears to your character.
So, even if you can touch and feel the target if you reach out, the illusion works just as written, it doesn't clip into buildings, it doesn't fall into the ground, it doesn't levitate because the item is worn by a smaller creature pretending to be a large one.
How would an ogre feel when disguised as a halfling? If you tried to touch him you would feel something on the way (the ogre's body) and would most likely get a saving throw to notice the illusion and see the real ogre. But on a failed save, the GM could say you feel a force field protecting him (or something along those lines).
As for a dog wearing a hat of (animal) disguise, it would look like a normal person walking around, even dodging obstacles so the illusion can remain convincing. You would only get a saving throw if you tried to touch that person, or if the dog barked (a human barking? what is going on here...).
Why? Because the spell description does not say so. It isn't intended to do so; if that was the case they would have spelled it out to work that way.
The spell doesn't work like a hologram that has a fixed center of emanation and must be correctly placed or otherwise it would "look weird", because the spell is altering the senses of those who see it. For contrast, I believe the technology guide does have an illusion spell that works exactly like a hologram, by the way.
Happy gaming. :)