I think that the circlip-only retention of the sprocket may contribute to the spline wear issue but a qualified mechanical engineer would be in a better position to judge. I thought about having the end of the output shaft threaded and then machining a retaining washer, but if the transmission isn't designed to take the side thrust of a retaining bolt, you could trash the entire transmission. I'm going to use Locktite.
Which Loctite product you are planning on using?
This is an interesting idea and might work very well. The odds of having to remove a front sprocket in the field are also very slim (can't really think why you would ever need to) but if you do it could be a major pain without heat and some good persuasion tools...
If you do this though I would say be very careful to ensure that none of the Loctite product gets between the countershaft and that metal spacer that sits on the outside of the engine case before the sprocket or you'll create other big(ger) problems.