Hey Col,
Not sure if you just skipped a few steps in a brief version of your question there or if you've got a few things mixed up so lets make that clear first.
(Very basic explanations here, more to it in a lot of instances but just follow the principles)
You can neck cases up with a reloading die. e.g. put a .243 Win case through a .308 Win die and it increases the neck size so the case becomes a .308 Win case.
And you can neck cases down... Put a .308 Win case through a .243 Win die and it becomes a .243 case.
Fireforming a case is to increase the case size to match a larger chamber. Usually for reasons like increasing the shoulder angle to increase the capacity of the case.
Fireforming 6mmBR case into 6mm Dasher is a good example.

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As you can see in the photo above the cartridges are the same except the shoulder of the 6mmBR case is lower than the 6mm Dasher case.
You fire the 6mmBR cartridge in a 6mm Dasher rifle and the pressure expands the case to match the Dasher chamber size.
Bit of a start to finish series here (just look at the cases, ignore the one bullet).

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So that's fire forming.
You can
not fire form a case to decrease any of it's dimensions. A .223 Rem wouldn't chamber in a .17 Rem rifle, and if somehow you forced it closed and fired the thing the projectile would jam and the whole thing would go bang in a lose your fingers kind of way.
Back to your question.
I haven't done it but looking at the case dimensions you could neck down .223 Rem cases into .17 Rem ones. (Someone jump in if wrong there)
Here are the cases side by side.

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It's quite a downsize and you might find you'd crumple the shoulders slightly when you size them. Also, case length of the .223 Rem is 45mm while the .17 Rem is 45.6mm so the necked down cases would also be slightly shorter.
Once you sized them down and loaded them though, then you would shoot them and that fireforming would reshape any crumpled shoulders and stretch the necks so you've had some good brass after that initial firing.
Clear as mud?
