Ok, I just did some quick math and hopefully the experts will check and correct my calculations.
Friction loss for 0.5" tubing is 0.16 psi/100':
0.16*4.40= 0.70 psi
Water pressure is 1 psi / 27" of water:
10' (depth of diffuser) = 120"/27 = 4.44 psi
Total pressure so far is around 5 psi. Like BZ stated in his post, you will have some backpressure from the diffuser. According to my chart, a Gast 0523 1/3 Hp compressor will yield 4 cfm at 5 psi. It will yield around 2 cfm @ 10psi.
You posted "......compressor pushing 4.2 cfm open flow at 10psi." I believe your compressor will only produce 4.2 cfm at open flow. At 10 psi, the cfm will be about half that. Double check the product performance chart.
Final thoughts; like BZ stated, don't skimp on the pipe size. 1/2" tubing looks borderline. I would use larger diameter tubing, like 1", so that when you expand your pond later, you'll have the extra capacity for that additional diffuser you are going to add.