IcyCool said:
Yes, that is correct. And the familiar would still be your familiar and get the familiar benefits. Now, for the drawbacks of this tactic:
Personally, I think a Familiar would balk at being changed on a fairly permanent basis.
However, assuming that it is ok with the change, there are some advantages for a pseudodragon familiar (assuming that one uses 3.5 RAW and not WotC's several aborted attempts to errata shape changing type spells and abilities):
1) The PD retains all of its abilities except physical attacks. Hence, it keeps Blindsense, Telepathy, Improved Evasion, etc.
2) The physical ability scores of the PD go from Str 6, Dex 15, Con 13 to something better (except for Dex). For example, Str 19, Dex 10, Con 17 for a Juvenile Bronze Dragon.
3) It goes from Sting (which it loses along with its Poison) and Bite to Bite / Claw / Claw / Wing / Wing / Tail.
4) It's AC goes from 18 / 14 / 16 (plus Familiar Natural Armor boost) to 23 / 9 / 23 (plus Familiar Natural Armor boost).
5) Although the Familiar is limited in hit points to half of its Master's, this does not include magic. Most Wizards by mid to high level should have an Amulet of Health of some sort. Before using this tactic, I would make sure my 15th level Wizard had an Amulet +4 or +6, hence, 15 or 22 additional hit points for the Familiar. Temporary Hit Points like with False Life would also be helpful. But, hit points is the Familiar's real weak point.
6) The Wizard could still share spells like Cat's Grace, Mage Armor, Shield, Stoneskin, etc. Course, this would only work if the Familiar stays within 5 feet, hence, it would work best if the Wizard is using the Familiar as a mount (possibly by casting Reduce Person on himself).
7) If the Wizard does the Mount trick, then the Familiar can do touch attacks for the Wizard, and if it is big enough, it can do these at 10 feet reach. Even further if the Wizard share spells Enlarge Person on the Familiar (e.g. the Familiar is larger, the Wizard is normal sized if he had previously cast Shrink Person on himself).
This tactic would probably work best against enemies who do not have spells. Dispel Magic could get tricky. Course, the Wizard could himself Polymorph and Dispel this whenever he wants.