Kirk,
I think the prime reason for VW front hub failure is that the factory torque spec doesn't hold the hub 'tight' enough to withstand the lateral loads put on it in a racing situation. I belive that the high lateral loads coupled w/ constant, hard acceleration 'loosen' the hub somewhat. I'm talking miniscule amounts here. The problem is, the 'shoulder' on the hub is a weak point, and since the products are not designed to withstand racing forces, I think even the slightest amount of play (or lack of support) at the hub shoulder will lead to failure, sometimes catestrophic.
I think the BFP method of torquing the axle nut mitigates this to some degree.
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MARRS #25 ITB Rabbit GTI