First, you need something to deal with the misalignment. They way it is connected to the arm will bind up.
Second, I have a hard time seeing it only moving 7/8"? Do you have a complete rig you could climb under while someone pushes in the clutch?
You won't need the same leverage with hydraulic as clutch anyway.
Being that it's "custom" I'd build some adjustment into it also. At minimum, find a hiem joint that threads onto that slave, then you have the correct pivot.
If it were me, I'd try and plump the slave and master together, then bleed it, so you can test and make sure it's doing what you want. Then still have more adjustment for once it's running.