A friend who plays DM, GM, etc. for several gaming groups at his college suggested this house rule for me to try, and I have found it fits theme and game play to add another layer of strategy to the skirmish. My group immediately adopted it and we haven't had a single second of LoS frustration since.
Instead of figures being able to hide behind other figures, we add 1 shield to the defense roll per space occupied by an enemy figure on the LoS path. So shooting through a large monster could still be done, but at the cost of 1 or 2 added shields.
I am sure this ruling isn't going to appeal to everyone, but maybe it is just what you were looking for!