FYI, all of the motors you'd consider using for a grinder will have a NEMA frame number/designation. This means that certain dimensions (including shaft diameter) are always going to be the same for that given frame number. You can find charts online that give the various specs per frame, but the most commonly used frame size in the 1 to 3 HP range is going to be a 56 frame motor which has a 5/8" shaft diameter. If there's a "C" after the number, that means it's face mountable, though IIRC, the Ameribrade uses a foot mount framed motor. Most C face motors have a removable foot/base for mounting either way.
That said, you may find a better deal on a 143 or 145 frame motor, which has a 7/8" diameter shaft. As for shaft size vs. torque, it's negligible at this HP range. 5/8" will be plenty for a 1.5 to 2 hp motor.
As for a 4" vs 7" drive wheel, that has more to do with the SFPM (surface feet per minute) you want to get out of your belts, though, yes, a 1hp will have a slightly easier time running a 4" than a 7" wheel. A 7" will give you a higher SFPM, however, which some makers prefer, who use a lot of ceramic belts which really need to be run at a higher SFPM to get the most out of them. Some guys get the smaller drive wheel and double the speed on their VFDs. Other makers get the larger wheel and STILL double the speed on their VFDs.
Personally, I use a 5" wheel, but if the choice was between 4" and 7" with a VFD, I'd probably lean toward the 7". I'd say you're still going to do most of your grinding at slower speeds anyway (especially finish grinding with higher grits), but it's nice to have that extra SFPM when you're hogging, and a larger drive wheel can still be slowed down plenty with a properly set VFD.