I think it might work, honestly. I am, as of now, adopting a 1.33x for Vegeta and Piccolo in the Trunks saga. I don't think Piccolo needs to be that close anymore, considering his challenge comes more from a proud warrior who isn't gonna allow Vegeta to have his way out rather than from one who knows he stands a chance against the Saiyajin upon getting a lot stronger. I intepret Piccolo taking Vegeta's taunt with annoyance (as seen visually by his overall demeanor) as him knowing the provocation is coming from someone who holds a power advantage, whereas when he knew he had a power advantage against Vegeta he kept his head cool and even allowed Vegeta to have the last word. I think Piccolo's reaction to Vegeta's taunt is more akin to his response to Raditz's provocation than it is to, let's say, his confidence in fighting Freeza or him calmly stating for Vegeta to wait and get his beatdown later on when this latter was annoyed with the Earthlings for reviving someone he deemed as trash.
I think their fight would look a lot like Piccolo vs 3rd form Freeza there as much as I'd like seeing Piccolo putting up a fight. Vegeta in the anime was even calling the shots and not annoyed by Piccolo's challenge, which generally doesn't match his demeanor when the tough talk comes from someone he knows might be stronger than himself (e.g being annoyed at Piccolo when this latter fused with Kami and being annoyed when Goku flat out stated he was stronger than him [It wasn't that much of an annoyance, but at least anime-wise we could see Vegeta's frustration])... I think were Vegeta's status quo as the 2nd strongest being disputed by Piccolo there, he'd show more of a salty and angry demeanor over Piccolo's challenge... his composure when dealing with the situation -- and only turning his anger upon Bulma -- suggests me he was still holding a significant lead there.