I wonder if drilling through the cracks between the words, etc and TIG at those spots, then blend on the inside as/if needed (or use a clean backer during the process) would suffice to keep it from getting worse. There could be some fatigue (not seen with the naked eye) slightly beyond the ends of the cracks, so those holes might be drilled slightly beyond the crack ends. At this point, you don't have much to lose with trying a repair since the tube is close to lost already.
As I understand it, in some cases (this is key, do your own research, it has been a long time since I researched this), a serial number can be restored as long as it was never completely obliterated or defaced. However, I would call the local ATF field office and see when I might catch someone there who specializes in the technical side of things, let them see the can or at least a good pic of it, and see what they might recommend. If it seems to you that the local guy might not quite be an expert about the matter, get a second opinion from elsewhere, maybe even at the NFA Branch (I hate cold-calling them about things of a technical nature, sometimes it starts of being a very rough road). Do bear in mind, the local guys are the ones that are most likely who you need to keep happy as if you ever have contact during a matter it will likely be with them. This is how I view the way I do business, local IOIs are who I need to please. If what they want is above and beyond, that is exactly what they will get from me. As far as interacting with the ATF goes, from what I have seen, they do not want the guy who is trying his best to do things right, they generally want the guy who thinks he can get away with doing as he pleases with blatant disregard for the law and regulations.
As far as this engraving goes, now I understand why it is uncommon to see a commercial can with all of the engraving in one line. I have also noticed that many are circumferentially engraved in a well spaced stack or with details spaced around the can. Gotta keep 'em separated...