I know that framebuilding may be the wrong sub for this but thought I could find legitimate expertise here.

The bike has been ridden this way for years. No visible problems. I didn't measure the length of the quill but the expansion wedge is definitely above the headset by 1-2 inches.

The solution that "follows the rules" would be to cut the threaded portion off the steerer and find a huge 1" threadless stem, but when I stand back and look at it, intuitively, that seems like it would be about the same strength. Doesn't that just move all the stress to a point about 2 inches lower, but now without the center bracing of the quill? Of course, cutting the steerer all the way down will require a freakishly large stem - didn't find anything on ebay.