In Japan, it was like that up until SMB3.
https://tcrf.net/Super_Mario_Bros._3/Version_Differences
Damage System
By far the biggest change between versions. In the Japanese version, getting hit while powered-up causes the player to shrink to Small Mario just like in the first two SuperMario Bros. games. Apparently this was deemed too hard for overseas players, so it was changed: Anything above Super Mario reverts only to Super Mario when hit, then to Small Mario. While Super Mario World went back to the Japanese system, this revised system became a series standard following New Super Mario Bros., and it was also retained in All-Stars. This change makes the short demo that plays on the title screen that explains the general physics of the game "incorrect" in the international versions as Mario is clearly shown being reduced to Small Mario when being hit by a shell when he is Raccoon Mario, something that, bizarrely enough, was not fixed for either All-Stars or Advance 4.