I've been using a 4WD Hydro Ford 1220 for 14 years. Originally used it 50% for landscaping/log pulling/snow clearing, and 50% for mowing. After adding a small NH 756C backhoe several years ago, I discovered the changeover to mowing took far too long, and picked up a Deere garden tractor for mowing tasks.
For a small tractor it's done a remarkable number of good-sized jobs. (Not to say I couldn't use something significantly larger, but that's not in the cards at the moment.) As for the 4WD/2WD issue, I actually don't find that many instances where the 4WD really is necessary. Some of that is probably due to the backhoe's transferring so much weight to the rear end, however.
I believe New Holland eventually added a separate pump for the power steering system, sometime in the mid-90's. That would be an advantage, since I find the steering on mine can become pretty heavy when the loader bucket is completely filled.
Overall, it's been a very reliable machine. The service manager at the local dealership also has a 1220, and I gather his has been trouble-free as well.
Let me know if you have any particular questions.
AndyH