Well, you sort of have it backwards.
4’8.5" is standard gauge, NO MATTER WHAT SCALE.
If you are modeling in HO, you are modeling trains in 1:87 scale, NO MATTER WHAT GAUGE YOU ARE USING.
So, if you are an HO modeler, if you are using track that is standard gauge in HO, you are a modeling standard gauge. If you are using track that is narrower than standard gauge in HO, you are modeling narrow gauge–HOn3, HOm (meter gauge), HOn2, HOn30, whatever.
If you are modeling O scale, you are modeling in 1:48 scale, again, no matter what gauge. If you, an O scale modeler, use track that is the same width as standard-gauge HO track (16.5mm in the real world), that track measures 30" in O scale and therefore you are modeling On30. Your buildings, people, trees, automobiles, would still be in O scale. Your trains will also be in O scale–but instead of modeling standard-gauge locomotives, you will be building models of narrow-gauge locomotives.
About the example you gave: If you take HO standard-gauge track and decide that it is now three-foot-wide narrow gauge track, you would indeed need models and equipment of an appropriate proportion to fit that measurement. Now, if HO standard-gauge track is 16.5mm wide, then this new scale you want would have scale feet 5.5mm long (since three 5.5mm “scale feet” in this context would be 16.5mm wide.)
Now, a real foot is about 305mm long. Dividing your scale foot by that real foot, you would be modeling in approximately 1:54 scale–somewhere in between S scale and O scale. I think that some modelers have used HO scale track to represent an approximation of Sn3 or SN3-1/2 (Sn42) gauge.
Rather than build every single item from scratch, most modelers will make use of an established scale, and either live with the approximation or handlay track to suit the gauge they wi***o model.