So it is what it is. I guess it gives this radio a bit of character. Any concern I should have of this impacting the radio's performance? Is this problem going to get worse and worse?
I haven't noticed mine getting worse but I have only had them for about 2% of its total life. It won't hurt the performance.
Aside from getting a replacement, I don't have any great ideas for a handle. I have seen radios on eBay go for $25 from time to time but the handle is pretty notoriously prone to breakage so that's about the last replacement part you are going to easily find.
I would probably try to make one out of wood but I haven't thought about it all that much. Actually, I could probably make one from carbon fiber, I would be the first kid on the block with a high-tech graphite Royal 3000.