Correct about the splice. A pure endgrain to endgrain joint is pretty useless. If you are going to use a plug, the endgrain to endgrain portion splice WILL create a poor glued joint, and the gradual change to facegrain to facegrain will improve the joint. However, because the end grain has the least compression, it will help couple the stresses across the hole, whereas NOT having the plug in place will transfer the stresses around the hole, increasing the stress on the facegrain sections of the hole. My point is that it is better to have the plug in place for coupling the stresses.It also keeps the hole from flexing and eventually fatiguing.This also explains WHY it is better to have your grain orientation correct. To those who have luthier skills, I was taught to repair holes in guitars in this manner. You can do whatever you want to your plane, I'll use my "poppycock" in mine, thank you. I also reiterate that is better to use carpenters glue, due to the fact that it is meant to have a thin film, tight fitting joint for maximum effectiveness. Epoxy is thicker and will not create as good a joint in this application, as it will tend to squeeze out.
Glenn Martin Biloxi, MS