That full 1/2" of slop - at a minimum - is going to eventually cause the comparatively lighter duty 3/4" holes to enlarge (egg out).
If the attachment has a hinge (or device) that permits vertical movement of the tongue, it should dispel any concerns about pin damage due to towing over uneven ground. In that case use a bushings or sleeves to take the 1-1/4" tractor hole down small enough to accept the 3/4" pin.
If the attachment has a rigid tongue, use your best judgment as to how much bushing/sleeve - if any - you want in the 1-1/4" hole. I support the earlier suggestion about using a short piece of 1" ID steel pipe. That will take the hole down to about 1", and still leave the "wiggle room" that some of these other guys are concerned about.
FWIW, I'm on 30 acres of rough pasture and steep wooded hillsides, over which I've towed a reasonable cross-section of attachments behind six different Cat 1 and Cat 2 tractors. After doing this for 16 years, I've probably accumulated five pounds of assorted bushings and sleeves. In all that time I've never once incurred any kind of damage to a pin, a hole, a bushing, or a coupler.
//greg//