You can shorten Shimano hoses at either end. The system is the same at both ends - barb/olive/compression nut. The advantage to doing it at the caliper end is that if you're careful you might get away without having to bleed the system at all, and if you do have to bleed it then it should be fairly straightforward as the lever (the hardest part in the system to get rid of air) should remain full of fluid.
You don't need the TL-BH62. I've just used the little yellow blocks that come with the retail kits held together with a small G-clamp and a small soft-faced mallet to drive the barb home. The Lifeline tool looks good FRM though - I could be tempted that that. The Park combined cutter and barb-inserter tool looked very tempting, until I saw the price.