Somewhat glad to hear I'm not the only one to do this! Sorry it happened to you.
My guess is the plug is there to prevent grease from the splines migrating forward and possibly unbalancing the drive shaft. Your suggested repair most likely would be okay and work just fine. Certainly a lot less work than what I did. I CAN get carried away at times.
I drilled a 1/2" hole in the center of the u-joint saddle at the opposite end of the shaft. I then took a 7/16" steel rod and drilled a centered hole at one end and pressed in a small pin (approximately 1/8" diameter). The pin is to allow the rod to center on the plug which has a small hole in the center.
Using the rod as a driver, I got the plug back where it should be and tapped it into place. I took this approach as I believe the plug is pressed, not welded in place.
To finish up, I sealed the hole in the saddle by pressing in an aluminum plug.
No problems since the repair was done in 2009. I took photos, but can't find them.
Regards,
Tatra Mike
San Diego, California
1985 244 "Alfsen" (the first - now at our new home in Seattle, WA)
1984 245 "Buster" (sold, but not forgotten)
1985 245 "Cosmo" (soon to be scrapped)
1985 245 "Daisy" (my regular vehicle - now at our new home in Seattle, WA)
1985 245 "Earl (gone to the vehicle retirement program)
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