Mike, it didn't need to be all that tight on the shaft because it was held by whatever was further down the crankshaft (the bits you've removed). However that part of the crankshaft looks rough, and so does the front surface of the remaining pulley. It looks as if you may need to tidy all of that by careful use of a scraper before you use the puller. The engine is probably not fixable, but you will need the pulley anyway, so it has to come off.

Most broken rods on B&S engines seem to be due to running them out of oil, and the rest seem to be caused by incorrect assembly or running them with an ineffective governor. Did that one have any oil in it?