Yeah you could shorten the spindle, it won't compromise strength from a safety point. It is already a pretty beefy piece for the use. The only thing is you will have to fix up the splines afterwards, little file work is all.
If I were you I would space the spindle inward using a nice collar, what about something from the plumbing department, thin wall piece of tubing. No lateral forces on it so it would have to be beefy. It would also space the spindle inward without surgery