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If the field "Service Product Type" has been set on the product it cannot be updated any more. To change that value it is necessary to delete and recreate the product. As the existing product might already be related to different records, this is not an optimal behaviour. 
Therefore an update of the field should be possible.

Category: Field Service
STATUS DETAILS
Declined
Ideas Administrator

Thank you for submitting your idea.

In this case, unfortunately, we don't think it is appropriate to change our behavior to enable a product to be changed from one Field Service Product Type to another.

As you suggested, it could already be related to multiple other records. In such cases, we allow a WO Product to be related to Products of Field Service Product Types "Inventory" and "Non-Inventory" and a WO Service to types "Service." Further, between "Inventory" and "Non-Inventory" products, we create Product Inventory records which we maintain against the Product.

If we allowed this to be changed, there would be significant complexity to understand what was changes, what the previous values were, what the new value is, what changes should be made to existing data, and so on. Even if we attempted to handle all of this correctly, we would still likely not support it in the way that everyone would want.

For these reasons, we don't feel this is a behavioral change we want to make. We hope you understand and will continue submitting ideas in the future.

Sincerely,

Jason Cohen

PM, Microsoft