I remember reading the definiton of horsepower as the amount of force needed to lift 100lbs at a rate of 1 foot per second (not word for word) Anyhow if the motor is putting out 1/2 horsepower at a low RPM its got more torque than a fast motor putting out 1/2 horsepower. Thats because horsepower is a rating of energy put out in a specific time frame, the faster the motor the more energy it puts out in that time frame.
I think your motor would be fine for grinding with. My grinder (4x36 belt sander) is only 1/3HP and it does fine. You can't hog off a lot of metal like you can with a big grinder, but I've never stoppped the belt before. Unless your planing on doing lots of heavy grinding, like all these guys that take orders and sell knives, your motor should be fine. It ought to put out enough torque to keep from getting bogged down much, unbless you plan on really leaning into the belt.
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It'll feel better when it stops hurting.