Well, it turns out the neck was not
perpendicular to the head’s tangent. I
don’t know if that was original or came
about later. So, the nut was already
angled incorrectly. The shortening of
the fretboard was to change the nut
angle.
He could have fixed the neck angle,
but at that point it would have been
cheaper to buy a new banjo.
I think you’re right on, here. The low gauge
and low tension made it really too easy to
over-press, and therefore over-sharpen, esp.
on the lower frets (as the distance between
frets is larger at the nut end).