Wow, great to see so much input on this.
I'll add some detail of what I need to accomplish with this: We have an off-grid camp up in NH and only need a big generator every now and then. So rather than have a big generator sitting there getting gummed up sitting idle, this can sit for a year or more with no use and be pulled out as needed. It will take up very little storage space, and I already have the tractor there for mowing. It will be about a 5 minute job to switch from mowing to getting the generator installed.
The beauty of the diesel is the stability of the RPM under load. The governor is very stable and the diesel just chugs along with lots of torque.
The router was not under load, so when I wanted more load I added the welder. That's when I could see that I need a larger pulley. I don't think that I'll really need the full capacity out of this unit, so I just need to be able to carry what I need. I want to keep the engine running at a moderate speed for fuel efficiency, yet fast enough to support whatever load I need. It's nice that I can go with a larger pulley on the generator and speed up the engine to get more power if I find that it's needed. Next step is to put on the 4" pulley, add a real belt tensioner, and then go looking for more stuff to load it up with.
I got this 332 last summer because I wanted a machine that holds its RPM better when running the snowblower attachment. The JD 332 is a 16 hp diesel, but it has more torque than the 18 HP gas JD 318 that it replaced, so the RPM is very stable under load. With just a little load the gas engine starts dropping RPM right away. The diesel just chugs along.