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Another tire size vs. gear ratio question

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Ok ... if a person has a 4. 10 ratio they can change to a larger diameter tire to effectively change the ratio to a more optimum number, 3. 7 or 3. 8, whatever. My question is ... has anyone decreased the tire diameter to change a 3. 55 ration to 3. 7 or 3. 8? Other then making the truck look a little odd with smaller tires, would there be any problem using a smaller diameter tire.
 
I have a 1/2 ton 4x4 down the street that a hispanic gentleman bought, over the course of the last few months he has dropped the truck and put on what I think are 13 in tires that are about as wide as they are tall.

I don't know what he has for a rear end, nor do I care to ask, but to get your truck in the 4. 10 respective ratio you would really have to drop tire size.

And let me tell you how absolutely worthless the truck is at that point:rolleyes:
 
I realize that reducing the tire diameter is not very practical ... I was just wondering if anyone had actually considered it.
 
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