I'm confident now that the inner races should not touch but in some cases they do and this leads to very early failure.
I built up a new hub and when installed at 140 or 160 ft-lb torque, there was an ever so slight bit of play at any direction. I used it for one weekend and that play became significantly more pronounced. When I pulled the hub apart, it was apparent that the ends of the inner races were in fact together. This was readily apparent by where grease was and where it wasn't. It had been squeezed from the gap. Inspecting the inner races showed absolutely no sign of damage. I haven't cleaned all the grease out yet but this tells me that the races in the hub body have been compressed. This is exactly what you would expect without preload. The forces going into the bearings are too sudden and the weakest part, the casting becomes damaged as a result.
From a manufacturing point of view, you would not want to make the ends touch. It would have to be very precise in order to have the required preload and both the cast hub and inner races would need tolerances that would drive the costs too high. The gap should be close however to help prevent foreign material from entering the bearings via a tortuous path (maze). I believe that there are manufacturing variances in the machining of the cast hub body that cause the inner races to bottom out, prevent the preload, and cause the hub to fail. It's not the only failure mode but definitely one of them.