That knife is WAY too soft, that's all. You over-heated it in your tempering cycle. There's no way in heck you should be able to deform a good file like that unless it's been seriously over-heated. I'll bet you a free knife it doesn't hold an edge worth a damn.

Any good knife should snap before it takes and keeps multiple bends like that, and it should take a lot more abuse than just batonning it through wood to do that.
What temperature did you temper it at? If you aimed for 450-500F on your oven dial, which should be about right, it probably just means your oven is running hotter than the dial says.
This
color chart will help you get in the ball-park. A reliable thermometer to put in the oven, so you can find out how hot it's really getting, would be even better.
You're not expecting too much, in my opinion. I've made several knives from Nicholson files just as you described. By tempering them back and grinding them to shape, being careful not to overheat the edge/tip. I started at the low range of temps, and found that two different ovens were both running a lot hotter than the dial said, based on temper color and performance.
Grind the teeth off to get a nice smooth, bright surface so you can judge the color after tempering, and start way low... preheat your oven for 300 degrees, let the file "soak" in there for at least an hour, and see how it looks. Too low a temp or too long of a soak won't hurt anything. It's no biggie to bump the temp up 25 degrees at a time until it starts looking good... nice straw/bronze color. Sand the color (oxide layer) off between steps (it won't take but a few seconds to do that) so you can see what's going on.
The file knives I've made and sold pass the
brass rod test, cannot be bent or broken with hand-pressure when vised-up, do not break when I whack the spine HARD against my vise (no anvil here yet :\), and take and keep a very fine edge quite well. I have no qualms about guaranteeing them.
Having said all that, yes you're better off starting with new steel and heat-treating it from the ground up. Or, at least annealing and re-heat-treating your files, for various reasons. But YES it can be done... it's not real difficult to make a file knife as you described, that will far out-perform the majority of factory-made knives you see.
Have fun!