I've never seen such a small hydraulic system for a truck winch but its a good idea as long as the pump, motor and gears are made nice and compact and it doesn't leak over time. I suppose you would get a more powerful winch relative to the draw off the battery when compared to an electric winch, which is a nice thing.
Don't forget, hydraulic pumps overheat with heavy loads and prolonged running periods (just as easily as electric motors). Over time, the hydraulic lines, and motor caseing will cycle through hot running conditions and cold shut down conditions, and start to leak... unavoidable with hydraulics. So I would definatly make sure that all compression fittings and gaskets are easy to axcess and repair/replace.
I suppose if your not expecting to use it a huge amount (like most people) then it would work, but its also nice to go with the solid reliability of a winch like Warn.
Post a link if you have one, I'm curious about this thing...