I like John's thoughts. Plating the snout and then finishing it to size sounds like a reasonable approach with no heat involved. The flame spraying technique is interesting, too. We had a Eutectic torch unit for metal spraying at work. Heat was involved to accomplish bonding, but it was not a fusion weld to the base metal piece. We used the technique for building up shafts while they were spun on a lathe. The surface was turned down afterwards to the appropriate diameter.
Another out-of-the-box idea that crosses my mind is knurling the undersize surface on a lathe and then turning the surface to the correct diameter. I'd use a diamond pattern knurling tool rather than a straight knurl. -The idea is the same as what was once common practice on piston skirts. SLIGHTLY increase the diameter for refitting purposes. While the diamond knurling tool would be used, the impression in the crank snout surface would only look like an 'X', not the pointy gripping surface we see on tools like some ratchets or drive punches. The material next to the 'X' impression is displaced, i.e., pushed out to increase the diameter slightly.
As was suggested, I suspect someone took a light finish type cut to clean-up the surface perhaps related to the welding of the damaged keyway. On a metal lathe, IF the tailstock is not properly aligned with the headstock, the turned surface of a shaft will have a slight taper, i.e. one end will measure different than the other. Another possibility might be that the end of the crank positioned in the chuck was not accurately centered.
312 cranks are getting tougher to come by... Personally, I'd try to save the crank.
NoShortcuts
a.k.a. Charlie Brown
near Syracuse, New York