Well that's a story title right there! Plenty of stylistic possibilities.
I would say i can detach my fetish from a sort of intellectual interest in inflation to some extent too, though obviously to me it is substantially fetishistic in nature.
I'm sure the appeal would be very different. I think there's probably a bit of overlap but it's easier for me to be detached. The problem with writing such a story seems to be that whereas inflation leads naturally to a climax, deflation is the reverse. I can think of three televisual deflation scenes though. This probably belongs somewhere else.
Hmm. That's a hard one, nineteenthly.
I'll pass on answering regarding erotic appeal, because my interest in inflation is generally not sexually-oriented.
As far as starting, I would almost think that starting with the deflation or being in a deflated state, followed by the inflation, would make sense in a larger number of scenarios. Of course, your imagination may differ.
I would not say that deflation is inherently less realistic, but that it may appeal to a quite different group of readers. After all, flat, physically two-dimensional characters have appeared in mainstream stories many times, just as inflated characters have.