Hard to imagine what caused the crack in the first place (other than massively overtightening the collet nut) but as I see it now, the conical bore might clock dead true (without a collet and nut), once a collet, nut and cutter are fitted and tightened up, the crack will open and introduce some eccentricity.
In one sense, one cannot properly ‘tighten’ the collet nut as the slit/split conical part of the spindle will be springing open limiting the amount of grip on the cutter.
For the thread plating idea to work the threads would have to have zero clearance to the point that the nut could not be rotated.
Since the spindle is toast and dismantling looks a daunting task, carrying out some sort of conversion to a different, probably smaller, collet type might be an option. Even with a fancy carbide or CBN tip I would not want to machine off the existing thread but I would consider grinding it off even it was slow process with a Dremel. Once there is a smooth precision cylinder a custom sleeve (with external thread) could be shrunk on (dry ice for the spindle and a blowlamp for the sleeve). A new oversize nut could be made to fit the existing collets.
Ian P