My theory, which I will not assume is correct without a report from Galtwish, is that he typed the info in his post rather than cut/paste from ATMA. Barring that, I think RTB did say that craft ilvls are sometimes inexplicably high, although I'm not at all sure he was talking about 1.07 at the time. But since one can get 20% ias on crafted heavy gloves, it stands to reason that there is an error in your theory somewhere.
Your craft definatly proves that the algorithm isn't used. And yes, there are occasions where the Ilvl is too high, such as Ilvl 80, or even Ilvl 99. I suppose these are the occasions where the .66*Clvl and .66*Ilvl are added, instead of taking the higher of the two. But when and why that happens, no idea. And if that Ilvl 80 one was crafted by a Clvl 78 character and a gambled pair of gloves, then it's just plain random at times. I once tested a Colossus Sword and it got Cruel once when crafting, when it should not have been able to.
The axe does more damage and can get 4 sockets, but the claw benefits from claw mastery (a single skill point gave 100% critical strike in 1.09, same as barb masteries, so may in 1.07 as well... RTB?) and opens up the left side of the MA tree.
I don't know, it's easy to test for anyone playing though.
Going through the differences between 1.07 and 1.10 affixes:
Prefix differences
+defense on jewels starts lower, has same maximum
+min/max on charms obviously much higher and several more are enabled
+% dmg on jewels nerfed (5% for Cinnabar, 21-25% for Ruby for example)
+stamina on jewels nerfed
+ar on jewels slightly lower (max is 92, vs 100 in 1.09+)
ed%/ar up to Knight's (51-65% ed) allowed to spawn on staves and wands
ed% up to Massive (51-65% ed) allowed to spawn on staves and wands
Bright lacks +10 ar
Lucky on charms very nerfed (4% highest on all)
Emerald on jewels at 2-3% mf
Lizards (+mana) has minimum at +1
Great Wyrm's (+mana) not allowed to spawn on rares
+mana on jewels starts lower, same maximum
+20 res all on grand charms
+13 res all on large charms
+6 res all on small charms
Chromatic maxes out at +25
res all on jewels badly nerfed (+5 maximum)
+individual res on grand charms to +36
+individual res on grand charms to +24
+individual res on grand charms to +12
+% dmg to demons allowed to spawn on wands and orbs
Mnemonic (+mana/Clvl) at .5/Clvl
No elemental/poison prefixes on rares
Poison is at 2 second duration, starts slightly higher rate, doesn't scale as high
+stack size halved
Suffix differences
+10/20% IAS spawns on wands
+block rate missing on blocking suffixes
Of winter has lower Alvl and lower dmg
of the Glacier is melee weapons only
Of incineration has lower Alvl and spawns on any weapon
of Storms spawns on any weapon
Elemental dmg has far lower maximum.
+min/max on charms obviously higher and several more are enabled
poison dmg nerfed, spawns on wands/staves/orbs
+dex slightly lower minimum on torso/boots
PMH spawns on wands/staves/orbs
gold find% on grand charms up to 33%
gold find on jewels nerfed to 5-20%
MF% on charms/jewels nerfed
+light radius affixes don't have +ar
-req spawns on orbs (yeah, very useful.)
of Atlas does not spawn on rares
of the Titan (rings, scep, mace, tors) does not spawn on rares
of the Giant (melee weap, gloves) does not spawn on rares
of Pacing (+10% frw) has far lower Alvl and Clvl req
Quantity replenish at half speed
hp/mana per Clvl halved
Charges of Teeth do not spawn
Charges of Iron maiden spawn on wands/knives/shields
Charges of Bash/Stun/Conc only spawn on barb helms (still typoed in 1.11, nice one Blizz)
CtC amp spawns on Orbs
elem dmg on jewels nerfed
elem dmg affixes on charms missing