Now we're getting somewhere...? (It's been too long since I last was a troubleshooter, I guess-- sorry for the wrong pic. Got the right end of the shaft this time!)
Attached, corrected photo of the sub-frame splined stub shaft, with the grease wiped off the end and the ruler placed against the "cross plate". Referring to pages 13 and 14 from the manual, the exposed end should extend 6-5/8" from the cross plate. Note that mine does.
It certainly seems that your splined stub shaft is not positioned correctly- either the set screws let go and the shaft slid forward, or maybe it wasn't positioned properly to begin with.
If the u-joint really feels tight, then most likely the metal on the splines & grooves is just badly worn. Perhaps repositioning the shaft so it protrudes the full 6-5/8" will allow clean metal splines to contact their respective grooves & all will be well. If not, perhaps the pieces are beyond salvaging and will have to be replaced. If repositioning the shaft seems to improve things, I'd say the problem is in fact worn splines and favor replacement... 2000 rpm can quickly turn nasty, as we've read in these posts.