I highly respected axle shop in Portland, OR just cut and welded the end of my 8.8. I was surprised they didn't drill out the plugs, but they said this is just fine. So, in other words, it should be just fine.
Sounds good to me also, I talked to my Welder guy today and he guarantees that it will not break at the weld. That is enough of a piece of mind for me : )