Would this round be less destructive on a red fox pelt than a .223 or even a .204 Ruger?

That depends upon what bullet, velocity, and distance you are shooting.
But usually yes, a 17 has somewhat less energy at hunting distances than a 20 cal or a 22 cal.

muck

I'll be shooting an extreme max of 200 yards. It just dawned on me. How about the .22 Hornet? Definately slower speeds than the .223 and .17 Rem with alot less report for the neighbors. Would this round fit the bill and is it accurate up to my max distance?

I would pass on the Hornet. It does not have the flat trajectory like the 17. The 17 will still blow a big hole in them if loaded with the wrong bullet and hit bones. If you handload, try about 3500 FPS with a 20 gr V-MAX.

Might I suggest a 221 Fireball?

Elkslayer, My curiosity is definately up for the .221 Fireball because others suggested the same as you. I think you just pushed me over the edge. In your opinion if you know, is the report much softer than a .223?

Its report is softer than the .222 and .223 but is greater than the .22 Hornet. I just purchased the .221 CZ and love it. But it is louder than the Hornet.

But don't let others mislead you. The Hornet works well at 200 yards on foxes. A case full of Lil Gun and a Nosler BT or Sierra Blitz gives great results. If I knew that all my shots at varmints were going to be on the short side of 200 yards my Hornet would be the only rifle I took from the safe.

The .221 Fireball barrel I'm looking at is 23" long with a 1 in 12 twist. Factory bullet selections are 32, 37, 42, and 50 grains. Is this twist feasable for these grain bullets? Could I shoot the 32 grain bullet accurately or would this twist be better suited for heavier bullets? I never really understood this.

IMO, the Fireball excells with 40-45gr pills, with the 40's being more available. Under 40gr, either they are Bergers or Calhoons, or the stubby Vmax, but they all suffer from a crummy BC.
AA1680 and LilGun will both reach the 3500+ fps range, under a 40gr. The 1:12 twist will stabilize a 50gr w/o a problem, if you prefer the heavier bullet. Speed can be around 3050fps or so.
RL7, H322, AA2200 also work great in the 221.
As posted earlier, the 221 is louder than a Hornet, but to me MUCH quieter than a 223.
I consider the Fireball an overachiever, performing great for its size. I have two, and they are the last thing several coyotes, and many crows, have heard...

The rounds I was speaking of are the HSM calhoons in 32, 37, 42 grain. I do not reload, so I'm stuck with factory rounds. Are the Calhoons good bullets?

Dthfrmbv: I have reloaded Calhoon's 17 cal offerings with modest success, and always thought he offered some .224's that should be great in a Hornet. I did not even know he offered loaded ammo...or is it a commercial reloader using his bullets?
Depending on your shooting volume, the Fireball could be pricey to feed, though Hornets on factory ammo are only mildly better.

My mistake, I thought everybody reloaded

They are commercially reloaded by HSM found in Cabela's.