as long as you manage to keep it cool (and i mean COOL) it won't.
i have no info on the nite-ize iq switch though, but i think i read somewhere that it will reduce brightness even on high, and you have to consider that it's designed for a minimag and MUCH lower currents.
you better use a flupic if you want multi-stage output control, it has an upper limit of 1,2A on boost.
if you really want to direct drive it, you should at least add *some* kind of current limiter. in case the led has a rather low vf, the current at ~4V will not be too good for the 14500.
ah, here's the source:
http://flashlightreviews.com/reviews/niteize_iq.htm