chowellsBasically all of the use cases in the article don't make sense with AES. That's not because it's AES. That's because its blocks are significantly larger than the data you want to protect. That's the point the article was making: in very specific circumstances, there is practical value in having the cipher output be small.
In that case just use CTR mode, no?
https://www.cs.ucdavis.edu/~rogaway/papers/thorp.pdf
(Not that this is the only solution but that it motivates the problem of why you can't just naively apply AES to the problem).