Well, an overnight soak in penetrating oil has resulted in no change... I even beat the hell out of it with a BFH... then pulled out and even bigger BFH and still nothing.
I am now resorting to sticking the sucker in the oven at 250, let it heat up and then heat the areas where the plastic is with a blow torch and once again try the BFH method.
I got to thinking about it some more and read up on several jeep and G-body sites, and everyone agrees that the shaft should collapse in the event of a crash... but if I cant get this thing to collapse, I am sending it back. There is no way in hell I'd ride around in anything with a fixed shaft. Being impaled just isnt my cup of tea... or at least that's what I'll tell them when I return it.
On a side note, just removing and reinstalling my stock shaft have tightened up some play in my steering. It wasn't loose, and wasnt fun to remove with the stock plastic shield, but for some reason just removing an reinstalling helped. My rag joint is definitely worn though.