http://bonsainut.com/index.php?threads/developing-azalea-material-through-drastic-pruning.18929/
This is the thread you should read if considering a drastic chop on this guy. John has a lot of experience pruning them back the way you are talking.
Where are you chili pepper? Tell us your location, that will impact when you should do the cut back.
If you are in the south, you are probably fine to proceed. I just whacked one back a couple weeks ago and it is budding back like crazy. If you are far North, you might be too late in the year to get good hardened off growth before winter...
Azaleas take a long time to "trunk up", so even letting it grow out another season won't make a big difference. Unless you plan to stick it somewhere and let it grow 5-10 years+, you won't probably see a huge difference. If you want a small tree and want to use what you have now- make your determination based around when you usually get your first hard freeze.
For a little tree like this, you can basically chop it down to a couple inches high mostly/ completely remove pretty much all the branches and build your tree from what grows off the trunk.