I would highly doubt the bar oil is NOT hazardous in some way. What it does have is viscosity control.
I would however suggest NOT using motor oil as it may be contaminated with gas which will affect your pickup hoses, and metal which will affect your filter. As far as wear on the bar and chain I do not see it as a problem, bars aren't that much and I make my own chain. I would say they die from improper use/ care more than oil contamination. We used to mix grease in to change the viscosity of the oil and thicken it.
I would however suggest talking to someone who does transmissions or hydraulics. I get ALL KINDS of clean tranny fluid out of Skyjacks and hydraulic oil which is filtered to 1-4 micron.
I suggest burning this in a Vevor heater over used oil depending on your oil source to rule out antifreeze and brake fluid.
Using a $70 Poulan? Hell yes use motor oil. For the reusers that can't sharpen a chain or mix fuel it won't really matter long term
and I have seen a lot of potentially lethal people buying saws.