Very clever - that is a bit of machining, but ends up with the exact sizes needed.
If I follow correctly, the machined sleeve will have an ID of 7/16 (to match the pilot) and an OD of 9/16
So the wall will be fairly thin about 1/16 inch - same as the remaining bit of valve guide left in the head.
Am I on track here ?

Back to the air hammer
As Kevin just said, McMaster lists three air chisel hammers - all with the common .401 " straight shank attachment
low power has a 1 5/8" dia cylinder and beats the fastest at 0-5000 beats per minute
medium power has a 2 5/8" cylinder and beats a bit slower at 0-3500
high power has a 3 1/2" cylinder and beats slowest at 0-2000

If I was doing this properly (before the BFH disaster) would you suggest the highest power ?

Snap-On lists medium and high power air hammers with similar dimensions