Sometimes I do get a splinter stuck between the wedge and the guides i have welded on the backbone. I usually just push the wedge to the top of its stroke and it will free up. My cylinder is not pulling the wedge back down, it only pushes it up, I let gravity pull it back down. I see no reason why hooking your winch cable in place of the hydraulic cylinder would cause any problems lifting the wedge.
I know this is something that you want to do using the splitter that you already own, and there is nothing wrong with that, but I am going to make a suggestion.
The splitter you have is currently working as it was intended to work. Instead of modifying it, why not just build what you want and sell the one you have. Everybody seems to want things right now, but with just a little patience and looking around, you can probably source the materials needed to build a really nice splitter that will do what you want it to do. I think you said your wood for this year was already split, that gives you a whole year to locate parts and build a splitter. My biggest expense in building my splitter was buying the hydraulic hoses, about $300. I found the hbeam, and all the wedge and slide materials in the scrap yard for $0.10lb. I gave $10 for the valve bank, the hydraulic pump I picked up out of the dirt at the scrap yard and they gave it to me. I did have to buy the pump mount and coupling, about $100. The trailer was a old boat trailer, free and the 25hp engine I salvaged from a old hydroseeder. The ram cylinder came off a old dump trailer. I didnt keep exact records, but I know I have less than $1000 in the whole setup. I built it in my shop in about a wk last winter, working just a few hrs a day. My shop isnt heated so I mostly worked from about 11am to about 3pm. I did spend several wks scrongeing parts, but once i had everything gathered, it didnt take anytime to put it together. I guess it all depends on what you want and how long you are willing to wait for it, but once you get your new splitter built, you can probably sell the mtd and get most, if not all, of your money back for the new splitter build. If you can fab the new wedge for the mtd, you can fab the splitter you really want. I dont mine offering suggestions or helping, which ever direction you choose to go, but I have found that sometimes its easier to start all over than to try redesigning someone elses work.
Your profile says you are located in NC Pa, is that North Central Pa or NC and Pa. If in NC, what part.