Usual preface: I’m with PreciseBits, so while I try to only post general information take everything I say with the understanding that I have a bias.
Not really. You can get away with it if you babysit it. However, any tool that is the same diameter as shank size is actually slightly smaller than the shank (other than tools with “land"). This is because in order to grind the edge you have to take off some of the material. So you are functionally rubbing a smooth shank in a slot that is slightly smaller.
That said people do still do it when they have to. I’d be nearby and have a fire extinguisher just in case though. This is also the one case I can think of where having a lot of angular runout might actually help. As that would make the tool functionally “bigger” as you go towards the tip.
Keep in mind for the below that I’m speaking as someone that works for a company that makes these. We even have what you were originally asking for. But I wouldn’t recommend this unless there was no other way or you are removing the bulk of the material before using these kinds of cutters.
Generally speaking these kinds of tools are “high aspect ratio” tooling. Where the ratio of length of cut to diameter is high. They are not really ever meant for slotting/profiling or even bulk material removal as those are much higher stress to put on the tool than ideal. There is necked or reach tooling where the shank is “necked” back at the end of the cutting length to allow more strength but not rub. You can get away with more that way but it’s still an issue.
No matter how well designed you still have a fundamental issue with this kind of tooling and that’s deflection related to stickout (the amount of tool sticking out of the collet). It looks something like this.
The force required to deflect (bend) the tool 0.001" per stickout and shank size:
1/8” shank, 1/8” diameter, 0.25” LOC
1/4" shank, 1/4" diameter, 0.50" LOC
1/2" shank, 1/2" diameter, 1" LOC
Numbers pulled from Millalyzer (Link)
Hope that’s useful. Let me know if there’s something I can help with.