I'm not sure what you mean by "a more reasonable application" or "surprised it would work"?
Sorry, I responded a little fast and lazy so I see my language almost reads a little curt- work’s been using up all my brain power, I guess. If this post feels long, I’m only trying to make up for the attention I should have given my initial post

. I’m just trying to understand the mechanism! You know that I’m always interested in the knowledge you have to share.
I was trying to say that I’m surprised the dowels work that way, because I would expect there would be a mechanical way that the tongue would separate, as in the case of the typical wooden wedge. The wood deflects and then compresses when it deflects no longer. (Technically there’s always local compression at the wedge site as the wedge is driven in, but it doesn’t start jamming things snug until the wood flairs sufficiently to the eye wall)
in the case of this dowel wedge, it meets resistance in the form of “hoop strength” of the tongue, which I would expect hampers the ability of the wood to expand. I would expect far more compression locally around the dowel rather than expansion at the boarders of the axe eye. The way to eliminate the local resistance of the hoop strength in the tongue is to cut a slot through the hoop, or likewise if a crack forms through it naturally due to local stress concentration.
I was thinking perhaps the hole for the dowel wedge would be drilled at the glue joint such that it could split the joint and mechanically force the wood apart. Likewise if the dowel generated another crack in the handle by which wood was leveraged apart it would be more obvious to me how it works.
I believe you when you say it works, and certainly I don’t have to be able to validate the solution by way of analysis for me to trust you. I just think it’s surprising. If I get the energy one day I’m going to try some experiments to see how driving a dowel swells wood, because it doesn’t seem intuitive that it would make a drastic change as in the case of a standard wedge.
It’s possible, however, that the swelling the dowel wedge causes is small and only intended to make a tighter fit of an already tight-ish fit, but from what I’ve read here I’m not sure if this is what you mean.