I have no idea whether that pump is any good, but I wouldn't saw off the pegs if the bike has any value. Another pump may fit there, but more importantly, you'd be destroying some original feature of the frame that can't be undone. Even if you carry CO2 a functional pump that can get, say, 80lbs is a nice backup, and useful to put a bit of air in the tube when first installing the tire over the rim.

I once watched a guy fix a flat with a CO2 cartridge only to see it pop again because the tube was pinched between rim and tire, so he had to do it again. I have no idea how many times you can do that with a cartridge, but a pump never stops giving.