Same goes for me. 60s through to the 80s in n. America were the era of domestic-looking Swede export stuff. 2 lb head (not 1 3/4 and not 2 1/4!) is an oddball which is nicely going to allow you to decide whether this is to become a 'house' axe (ie magnum hatchet) or a 'boy's' axe with a 24-26" handle. Handle that's on there now has been adapted from something else or has been substantially shortened. Domestic axe purists aren't into the flat cheeks of Euro axes but that's never bothered me any. You'll find the steel is top drawer and this baby will give you good service.
The poll damage is a matter of preference...some remove it, some don't. I usually will at least file any major damage down, just to make sure it won't catch wood when used for splitting and to ensure there are no sharp edges to cut you up. You can hammer it down as well if you are patient and go slow/easy. I wouldn't bother trying to get it perfect though. Other than that you sound like you're well on your way. I would consider a new haft, though. That is very likely not the original, and appears to be a cut-off full-size handle someone jammed in there and the fit will never be very good.
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