Well, I am new to this thread...... And I didn't read all 17 or so pages, just the first 9 or so. So forgive me if it's been mentioned.
Here on the farm, tractors have been used to run PTO powered irrigation pumps for a long time. I personally have not used one, but I know of a few that have. One tractor I saw had a Murphy Safety switch system put on it. It basically is a unit that monitors the engine oil pressure and temperature. If the unit senses a low oil/high water temp it cuts the fuel. The tractor I saw had an electric valve put in the fuel line before the low pressure pump. A system like that would save the tractor. High temp, low oil, system cuts the fuel....shutting down the tractor. Yes, the key is on, and your battery maybe drained, but at least you won't have a burned/seized engine.
PTO speed- as I run JD tractors (older units), I have an issue w/ the manufacture's rated PTO speed and what the engine runs at. My JD's for a 540 PTO have to run at over 2000 RPM! That's way to high in my opinion. Most of the PTO PTO gen sets I see have a gear box on them and the other gen heads say belt driven. Most of the belt driven gen heads I have seen say they run at about 3200 RPM (same as a small gas engine). Well, in order to get it that fast, you would actually need an over-drive type belt set up. If I were to set up a PTO using a belt driven, I would set it up so my engine speed would be 1300-1600RPM and the generator would turn close to max speed it's rated. If ya think a V belt would slip, then one could always get a toothed belt like a timing belt. But that is me. Your tractor's 540RPM and engine speed maybe much different (or lower).