I guess what guys like D.D. Machine do is cut the shaft then re-heat treat it? I know he had an option where you could send in your current shaft and he would cut it down.
Side note, Scott had an axle shaft resplined by Moser. I don't think it was heat treated after the machining and I am guessing it is still working. So why would that work and not this? Is it because you have to take too much material off and get out of the outside hardened area?