I can do that.
I've never seen that done before. I don't know where something like that would be used.
I've seen panel width variation commonly (where needed to fit existing wall dimensions); but never height. I've always seen the wainscote panels to be uniform height, unless they need to be cut down to accomodate a step in the floor. Then it is the bottom that gets cut off and the top trim strip remains at the same height; as close as possible.
I have never worked on buildings as old as those in Europe, though. Colonial American, mostly in the Cape Cod region, is the oldest that I've worked with. There could be be style differences too; I'm just going by memory of what I've seen personally over the years.

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