couple questions, few suggestions. First I can't tell from the pics of the Jeep if the springs have already been outboarded from the frame. If not I'd see if this is an option to gain the required width and leave the pumkin alone. Out boarded springs look like alot of work but they really aren't bad. Plus you can talor the ride height out without playing with extra stiff leaves. On the spring packs I've seen where stock wrangler springs were to soft and allowed alot of spring wrap, add a Rancho single add-a-leaf and the problem is mostly solve cheaply without crazy unforgiving ladder bar type add ons. Out boarded spring really help in the body roll department too.
If you do decide to cut the pumkin. i would modify the spring perch by notching as much of the side where the rib is so a minimal amount of material is removed from the housing rather than plaining off the whole thing as pictured. Just enough so it doesn't protrude through the perch and allows room to clamp the leaf pack.
I'd Leaving consider building a U-bolt elininator to clamp the pack made like a channel with wings for bolts. The machined top is going to require a plate with matching bolt holes for that route.
(NOT SO SURE THIS INTERNET BRAIN FART WILL WORK)
When you gusset the housing I'd make the gusset extend farther along the tube and climb the profile of the housing at least 3/4 of the way to the peak. I'd also construct it out of no thinner than 1/2 stock and bevel the joint 1/3 of each side.
The original rib braces the housing in tension the new rib will resist compression so I'd spread that load out as much as possible. Plus notching the top as you have pictured will take out all of the added pieces ability to resist that load.
As for welding, all of the Dana housings I've welded on required Nickle cast iron proceedures. Only one GM corperate axle have I ever welded worked on mig. Use Nickle 55, it is specificly made to weld cast and mild steel to each other. The rod holder comes with some good procedures on them. Preheat is not required with small interupted beads with peening between passes but a temp of around 450-600 degress doesn't hurt and will insure no moisture is present in the cast and that the weld flows out more uniformly.
If you really are stuck on mig before you ever start cut a test piece of 1/4 steel as long as the rib you intend to cut on since is going to get the knife. Preheat the rib to around 450 and fillet weld the 1/4 to the top of it with a 1/4 straight pass. Let the whole thing sit and air cool only. Now get the BFH out and fold the ear over. If it holds until folded to a 90 degree or so MIG it, If not use the Nickle. If it cracks at all down in the cast below the weld still use the Nickle because that is a result of weld embritlement. And cheap Hardware Nickle rods are a WASTES of money. YOU MUST PREHEAT WITH MIG.
Good luck and throw us up some results pics.