Osu, Havamal.
I'm not an expert on the subject,but here's my 2 cents anyway...
Makiwara training, or striking hard objects, is not meant for developing striking power.
Its main purpose is to condition what is known in Muay Thai as "the 8 limbs" (hands, elbows, knees, lower legs) via cortical remodeling (bone remodeling) or hardening. This way, your knuckles, for example, won't have its skin scrapped that much (or not at all) when hitting the heavy bag, or a person (the bag is probably harder than a human being anyway). You don't hit a hard object or
makiwara very hard as you would a punching bag. Just hard enough, something like hit then press on the object.
en.wikipedia.org/wiki/Bone_remodelingIt is also another form of developing proper technique, form, and striking area, in the same way developing straight (literally) punches in boxing via top-and-bottom bag. If you don't do techniques properly, you'll definitely get hurt as opposed to just the bag swinging and coming back at you in an improper angle. You can also do some form of conditioning on a heavy bag, but it won't give you the same results as striking hard surfaces.
But remember that it can lead to bone problems later in life so keep this kind of training in moderation.
Striking power is developed by hitting the heavy bag, period. You can still train like a pro fighter just keep in mind that in street fighting or self defense, you want to end the fight quickly, not jab away and measure your opponent. It's your personal purpose for training anyway, right?
Ichigeki Hissatsu, while the chance for success is slim, is the thing to aim for. The good thing is, if you fail to stop your opponent with a full strike, you can still deliver more full powered shots, with minimal injury on your part.
Having a small area for a dojo is good for training your footwork, like Sabaki, etc. It also trains you not to "run around" (like Anderson Silva vs Demian Maia), not to "swing" your hooking punches, etc.
I use a G-Shock watch for my timer...
I hope what I just shared made sense to you, Havamal. I hope this helps you as well. Osu!