Sure they do outgrow by height, but there are a lot of car seats now with high backs. DS outgrew 2 car seats by height rear-facing, and would likely outgrow the one I could rear-face him in currently by height as well. He just isn't likely to outgrow it by height for at least another 4+ months which would make him 4 before outgrowing it by height. There are a lot of car seats out there now that are good for extended rear-facing, and that make it unlikely that your child will outgrow it rear-facing by height before 3 or 4 at the earliest.
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