Layne,
The larger Deckel 3D pantographs I have run will take up to 1/2" end mills.
They are used for mold making, plastic injection and lost wax etc.
Using a ball mill for contouring and shaping works well, you just use a ball end stylus on the pattern.
I don't think it would be a problem to use a small ball end mill in a 2D panto.
An angled cutter is more common for 2D work.
i've heard that since most knifemakers (and presumably many other trades, as well) have gone to CNC, some fantastic old Gortons & Deckels can now be had for a song. in fact, maybe 15 years ago a knifemaker friend offered me his fully tooled Gorton for $1,000. he told me the machine sold new for $26,000(?) + tooling, he paid only about $4,000(?) used. so you can see how the market is headed on those...