I know that extrapolating Cat IV based on derating Cat III is a big no-no.
Not true.
How about going to Cat II? Can it be assumed that any Cat III 600V device can handle Cat II 1000V or that assumption is booogus?
The trick is to not to raise the voltage.
A 600V rated multimeter cannot be used on 1000V, even if it's a lower CAT 1000V.
A 600V CAT III multimeter could be a 300V CAT IV multimeter though.