Thanks for the feedback. After some debate, I've decided to keep the axle location.
Made the decision both because I plan on the tongue extension with a decent amount of weight on the front and the fact that I plan to install a completely different axle next winter and can make any adjustments at that time if needed. The new axle will be wider and 6 lug to match my truck so I plan on filling the area I cut for the fender now and then install the appropriate fender to the outside wherever I put the new axle.
I've owned this trailer for about a year and used it frequently towing engine/transmissions, lumber, quickrete, etc and tracking has been great with no tire issues where it is now so I also was comfortable not worrying too much about making any adjustments for axle alignment for this one.
We finished framing and starting using the sealer I saw referenced in the construction technique area. It's working out great except that 2 rolls wasn't enough for me, and the store was very closed by the time I got to this point last night.

We also got the first side wall cut. we're using just a 4x8 3/4" ply for the sides to keep it simple. My wife was the master with the jigsaw for this one.
