I've used several HO sized decoders in smaller stuff. The N scale Digitrax decoders have essentially the same capability, they are narrower and a little more expensive. The Digitrax Z scale decoders handle almost the same current, but they DO NOT handle large scale track voltage.
USA Speeder, TSU1000, sound+motor, marginal on large scale track voltage
Bachmann Handcar, DH123 motor
Aristo PCC, DH123, SFX004 sound
2nd gen Big Hauler, DH123
Bachmann Davenport, ESU v3.5 sound + motor
Bachmann Railtruck, ESU v3.5 sound + motor
LGB Porter, SFX064d sound (NCE D408 motor)
Lionel Handcar, DH123 (with current limiting resistor)
Those were the successes
I burned up a DH123 in a Lionel James and after that and AD320 in the same loco but that one lasted over a year.