I would, if it was magically shrunk. Not if it were whittled down. Normally, you'd have the result of a spell which would be temporary, allowing a staff to be concealed, which is good creative spell-casting. You could do enchantments to get permanently reduced size, which would simply be another special feature. It should be quite a bit of extra work and consequently expense. If a dagger can strike as a two-handed sword, I don't see anything unbalanced in a wand-sized staff. It's just a high-end item that needs to be handled as such.