Its sort of a project of mine to study breeds of animals and domestication, and mini muscovies sound awesome!
Here are some of the complications, however, behind the project:
For a healthy breed to be developed, you need to have a large starting group so that the genetics remain varied and they don't become inbred, which can lead to weakness, short lifespans and sterility.
Secondly, breeding the smallest to the smallest is often done by selecting the runts, which means you are breeding the weakest individuals, the opposite of survival of the fittest, which means you would be selecting for animals more prone to disease.
It would take a long time, and a lot of people don't have the patience to wait the years it takes to create a stable new breed. Many people do it, but they put a lot of dedication and passion into it. It takes a person who loves what they are doing.
Still, the idea sounds really cool. It would create muscovies that would be good broodies, meat birds, and pets but not be loud like ducks and not as dangerous (with their claws), messy, or take up as much space as their full sized counterparts.
Small animals can be bred naturally, as happens in the wild when animals become trapped on an island and adapt to be small. This is how many of the miniature breeds of pigs, ponies, and even some of the dogs and sheep came into existence. These breeds are very hardy, usually with few health problems, and often very self sufficient on farms.
Best of luck to you.