My little Weldking mini has those tubes as well. Evan's welds are beautiful. In addition to offering the best support for the axle, I think it (arguably) looks the nicest. When doing that, it's obvious, the tube ends have to be notched. Might also be important to be sure those notches are carefully centered on the tubes.
Sunnyknoll, there are a couple posts in here somewhere where [MENTION=31471]mrpat[/MENTION] and [MENTION=18286]manchester1[/MENTION] made dies for crimping these with their shop presses. Both of them made some really clean, centered pieces. I agree that they are not the strongest, for higher performance machines and adult riders, but work for vintage or period correct bikes.
The other option of course is the tubes. I found an online tube coping calculator where you enter in the particulars and print out a pattern. Most of the metal fabricators know about this, but it was news to me. The result was that I was finally able to do precision "notches" in mere seconds with my angle grinder.
Here is the link.
Centering the forks is as easy as setting them to level, and over spraying with primer or matte paint, or guide coat, and running a level on the top to lightly score the paint. That will give you and index for aligning the coping. To level, flip the forks up to vertical, and lay the tube pieces in their coped areas, and set to level with magnet/level/axle/spacers. Not hard at all. Takes longer to talk about it.
As far as heim joints, I can understand why someone would attempt it. I do not understand why someone would weld on a nut to a fork leg- since there are threaded inserts for use with this in panhard fabrications. Still, one is left with a threaded axle support that could pivot, that rests all of the weight against threads, and that begins a service cycle of the pivoting eye.
Your idea of smoothing the threads and rose budding the heim in place is a better idea, but you are still running an axle into a moveable surface. Probably never have an incident with it on a regular kid's mini bike. But with the tube and coping option available, why take that chance?
I hope I was able to provide some food for thought, and maybe give you some ideas. I'm no master fabricator, so this is the stuff I came up with that didn't require me farming out my work, or buying more tools.