I once had a chance to fire a custom Colt SAA which had been built in the 1930s and was rebarreled with a piece of Winchester 92 barrel and chambered for the .25-20. I didn't have anything to try in it but factory 86-gr. Super-X softpoint loads, but it was accurate and pleasant to shoot.
I wasn't able to chronograph any of the loads, but my best guess based on chronographing .32-20 factory loads, is that they would be subsonic, around 1000 f.p.s. At this velocity you will not get any bullet expansion at all, but it would be a good, nondestrictive turkey load. I can tell you from experience that at over about 1500 f.p.s. the 85-86-gr. .25-20 softpoint bullets fired from a rifle are too destructive for use on eating game. I saw no problem with set back, at least in very limited firing of one box of shells in that example.
I agree that a strong modern gun in this caliber which could handle rifle-type loads useable in the Marlin 1894 would be a great small game, turkey and varmint gun. I think a Ruger Blackhawk with 5-1/2" barrel would be just the ticket.