A fluted barrel can be turned down. It's certainly not desirable, but it can be done.
Back about 10 years ago, one of my AR customers got into a 4-wheeler accident and really put the hurt to his AR. His insurance company settled with him, and he brought the gun to me to repair. The barrel ended up getting dragged on the pavement, and had a lot of damage on one side, mostly near the muzzle. I replaced the barrel, free-float tube, gas-block and several other parts, and sent it on it's way.
Later, I took that barrel and turned the diameter, from the gas-block to the muzzle, from .900" down to .860" and built it into an AR for my son. That barrel still shot fantastic! Now I may have just been lucky, but after all that barrel had been through, I didn't have anything to loose.
While barrel diameter VS. accuracy is purely a trade-off, fluting depth is mostly a safety issue. The heaviest barrel will generally be the most rigid, and the most accurate. On the AR platform, there are limitations to what degree of accuracy improvement that can be expected, beyond a certain diameter barrel.
The fluting depth should be dictated by several things: 1) barrel material. 2) bore diameter. 3) operating pressure of the cartridge. 4) the area of the barrel.
The larger the bore diameter, given the same pressure and barrel material, the thicker the barrel needs to be to have the same safety margin. This may not make sense to some of you, but it's true. The more AREA in the bore for the PRESSURE to act on, the more stress that same pressure will impart. Look at a propane cylinder: If you purchase a 1 pound cylinder from Wal-Mart, the tank material is just thin sheet-metal. Now if you get a 20 pound cylinder for your gas-grill, the material used is heavier than on the 1 pound tank. By the time you get into the 1000 gallon tanks, they are made out of very heavy plate. The propane that each of the tanks contain is the same, and generates the same pressure at the same ambient temperature, but as the area of the inside of the tank increases, the thickness of the tank material has to go up in proportion.
The area of the barrel that you are fluting is also important. Peak-pressure will normally be in the first few inches in front of the chamber. Fluting in this area would need to be quite shallow. The pressure out near the muzzle will normally be quite a bit lower, and fluting in that area can be more agressive. Fluting too deep near the muzzle can have an adverse effect on accuracy though. Deep fluting out near the muzzle can turn the muzzle area into a "tuning fork".