Could you (or anyone) describe in more detail how you'd go about this? My main concern is how deep this crack might be - if it's cracked as deep as it is long that would be a lot of metal to remove, and I wouldn't want to mangle this nice blade in that way. On the other hand, if it's more likely the crack is only on the surface, and I could save this blade by grinding a shallow scallop in that spot, I'd do it.
Being a blacksmith and seeing the crack, regardless of how it was caused, I would not attempt to grind the crack out. The resultant reshaped blade might not look attractive, you might loose valuable temper which equates to work ability of the blade. The balance will be changed and so the "sweet spot" may move on you. Since Bura crafted that blade, your best bet would be to keep it as a collectible or sell/trade to another aficionado. It's my personal opinion that batoning wood with a smallish knife is not in the best interest of the knife. A fro is the proper tool or a bigger blade.
As this was before the micro bowie, this is at least a 15" blade. Not a small bowie. Back when this was made, they were also quite thick. Being differentially tempered, the spine should not be hardened. If done carefully and kept cool there should be no loss in temper. The sweet spot won't "change", it will still be in the same place it was put. The "balance" of the blade may be somewhat affected, putting it a bit more handle heavy. If done with care and forethought the blade should be both attractive and useable in the end. The only problem that isn't foreseeable is just how deep the crack may be on the inside.
Its either retire the blade to light usage or altogether as a "collectible" or contact Auntie for replacement.