Can anyone recommend that doesn't stick out 2" outside of the hitch receiver?
Putting a strap around the center of a hitch pin is not going to yield the same shear strength. You would be applying the force in the center of the pin far from the edge where it is "anchored", that is not actually shear. It will bend it far before that. Plus that number will depend on the grade of steel used.Shear strength on a 5/8 hitch pin is around 30000 psi which is about the same as a steel 3/4 shackle. That said I would made sure you use a recovery strap Ann's not a tow strap whatever you use.