Can't resist a thread about balance and mass distribution.

But first, let me say don't get so concerned about this stuff that it prevents you from actually creating your blade. Sure, do some research & try to get familiar with these concepts, but don't let what I or anyone else says keep you wracking your brain instead of grinding steel.
Now then,
this article should probably be the place to start since it describes things on a more basic level.
Would it even matter, or is the blade heavy balance what is best in a shortsword/long knife?
Well, how long & heavy of a blade are we talking about here? What kind of shape? Something that looks like a short saber, or a clip or drop point? The smaller the blade is, the less it really matters, IMO. The differences will still be there, but may be harder to notice in real world use. I'd personally prefer to make the tang with less mass towards the back end, with whatever method you choose.
..The cutting action I'd like to see in this is like a short saber. To make powerful cuts between 1/4 and 1/3 the down from the tip.
Thanks. It's good to have a clear understanding of what you're trying to do. I don't think you'll need a great deal of distal taper to achieve this, since you'll remove some mass near the tip with that false edge anyway. You will of course need some distal taper though. Say, maybe in the rough neighborhood of 70% or so? (i.e., the tip area would only be 70% of the thickness at the base, assuming a blade profile more like a saber or katana. It may need to be thicker if you're removing mass with the profile tapers as well.) Of course, don't do the taper all at once- just keep grinding evenly off both sides & keep checking the feel as you go. This combined with the tapered tang should get your pivot point 1/4 to 1/3 back without need for pommel weights. Now as far as how powerful that blow is or how heavy it feels to swing, will depend on the total mass.
You're on the right track though regarding how removing mass from the tip will move the guard pivot (aka "dynamic balance point"- Cliff's term) out towards the tip more. But there is a practical limit here- the tip would need to get really light to move that point very close, so far as I can figure, and I'd consider this less efficient than using a pommel anyway.
You are trying to over think this.
Make the blade and leave the tang a bit long. Get the feel of the blade in the hand after HT and finish grind.
I agree that your intuition as a smith will play a huge role in this. And no one says you have to get it perfectly "correct" on the first try. I completely agree that the mass must be properly distrubuted in the blade first, before we can really even start thinking about adding a pommel.
The big "skull Crusher" pommels were nothing but counterweights.
Not sure how you're meaning this... If you just mean they're used to bring the static balance point closer to the hand, I'd disagree. They improve the "feel" by changing the blade's rotational behavior. Either way they do more than that, too. They can really add to cutting power at the blade's tip if done properly.