I would bet it works fine overall, but the big difference between a TKO and toploader is the TKO runs on ATF(needle bearings on everything) and the toploader runs on gear lube. The radial groove likely helps put more lube under the gears where its needed.
Don't feel bad about welding a 2nd gear. I did that many years back myself. Never leaked, never knew it was low. One day, running down the highway it suddenly started squealing and it locked up. I had to drive down the highway in 2nd gear. Little rough with 4.10 gears in my old pickup.