As for the question of too large of an engine,,
You can pull the 6.0 Liter LS engine out of a Chevy pickup, (360 horsepower) and install it on the woodsplitter.
Even at that, you will not have too much engine.
You could even add nitrous oxide,, the engine is still not too big,,
Headers, high lift cam, a Detroit 6-71 belt drive supercharger,, all can be added, and the engine is still not too big.
Here is an article to help with the Chevy engine upgrades,,,
https://www.motortrend.com/how-to/ls-truck-6-liter-power-upgrade/
The pump is protected by the spring pressure relief located in the control valve.
Actually you see this all the time, hydraulic pumps mounted to the front bumper of garbage trucks, and concrete trucks.
The hydraulics of those trucks only need a fraction of the horsepower of the diesel engine,, but, they are perfect systems,,
because of the relief valve.
Put the best $$$ value engine on the woodsplitter, the Chevy LS will need a custom pump mount,,
AND a HUGE gas tank!!