Par for the course for axle R&D, at least there are several things on the table that could be altered for the next round. It is an amazing thing you've done by having custom axles made.
-I am pretty sure axle shafts should not be through-hardened. The core needs to be tough but not brittle. The surface needs to be hardened to reduce spline wear and possibly for other reasons.
EDIT: That is probably not true. I think there are axle shafts that are through hardened, but possibly rarer.
-The splines are almost certainly involute. I dont think this can be ignored, but I could be wrong. After all, the splines didn't shear off. But putting the forces where they need to be may be effecting how the stress concentrates at the risers.
-I know this wont be popular, but perhaps a radical change in geometry would go much further to reduce the stress risers, since thats where the failures are occuring, versus breaking in the middle of the shaft due to exceeding tensile strength.
EDIT: One more thing, were the splines ground and/or polished? Might be a good idea to make them as smooth as possible to reduce crack formation possibilities.
Yes...this would (ducks) mean reducing shaft diameter so you can neck up at the splines. (see pic below) I believe this diagram is from a Carroll Smith book.
Check out this very good article about axle shafts, not professional or as good as an industry standard book from the library, but probably the best "write up" short of that
http://www.pirate4x4.com/tech/billav...0/index1b.html