I dont think those levels of water in engine oil used in hydraulic systems will cause any problems. If I am wrong, there is thousands of machines with potential problems around the world. I think most of ie. earth moving machines accept the use of engine oil in hydraulic systems.
I have not seen any facts about oil functionality (film strength, lubrication properties) in this scenario. I belive you need free water droplets in the oil to reach cavitation, microbacterial growth, corrosion and other "normal" problems.
I have tryed to remove moisture from this kind of oil, and was not able to reach bellow 0,1% with vakuum purification.