this would sure look better. but I think before I went thru that amout of work i would swap out the steer axle with a non driven one.If it was me, I'd cut the center differential part completely out. Then weld in a new piece material, of the same size and thickness as the existing axle tubing in it's place. Axle housings are narrowed and widened everyday, and as for strength/integrity this would be no different. It would give it a much cleaner, professional look, than an un used, capped-off differential housing.
your idea is a good one but as usual im up against a time frame.