Supposedly the case hardening extends down the axle into where the new splines are cut so there's still some strength there but cutting new splines into a case hardened shell won't be as good as the factory roll forged splines.
As a previous poster stated,they probably won't stand up to drag race starts with slicks but are likely fine for mild street cars on street tires.Personally I can't picture my 273 2bbl stripping splines off any kind of rearend never mind an 8 3/4.