So I started this mod myself tonight and now I can see some of what Doctorish is talking about. It will also answer DoctorEight's question above.
First i cut the screwdriver in half making sure to use one of those wire thin jewellery saws so as to remove as little material as possible from the length of the upper shaft that will retract.
This demonstrates clearly that the electronics in the toy don't come anywhere near the shaft and are located solely in the base below the bottom.
Whats surprising, however is how incredibly thick the inside wall of the screwdriver appears to be once cut:
However this apparent wall thickness is deceiving as it is in fact two tubes one smaller located within the main body with a minuscule tolerance that makes them appear as one.
You can see the inner tube sticking out of the bottom of the removed emitter piece here:
In this portion it's actually loose and slides up and down like this:
But has a "lock" position that makes me wonder if this toy wasn't originally intended to contract like the others, or at least uses the same inner moulding.
With a great deal of poking and prying with a variety of awls and pliers I was able to slowly begin twisting and mangling this inner tube away from the outer wall and basically ripping it out bit by bit like a monkey. (unfortunately I couldn't use power tools because the wife is sick and asleep so it had to be all old fashioned hand work.
Eventually I was able to remove enough of it to easily accommodate the depth the top shaft needs to drop:
Now measuring it with callipers slightly less than 1mm needs to filed down on the inside wall of the bottom part to accommodate the upper shaft in the down position. It also happens the nub left over from the rough removal of the inside tube will make a nice base for the spring!
Unfortunately that part will have to wait as it will definitely require the dremel and as I said I'm on noise lock down at the moment....