Not a lot of wood there, .70" thick on the ipe, is that correct? Where does the 2.25" come from if the ipe is only .70" thick.
If you want a bendy handle, I wouldn't reduce the width at all, just taper the thickness, but it sounds like you need to cut out a knot. How far away from the tip is the pin knot, and what draw length are you aiming for? You may be able to get a short bow out of it, just cut it off in the length.
Lot's of questions to be answered before anyone can give you a better answer.
Tattoo Dave