The idea of modifying your air tank in anyway is a huge problem and I will explain why. The important thing is that fortunately nobody got hurt from this incident and hopefully a whole lot of people can learn what not to do.
The cause of failure in this situation was not poor welds or poor fabrication. Instead it has to do with the way that internal stresses work in a pressure vessel. First, the drawing below will help to wrap your mind around the way that the internal pressure turns into longitudinal stress or "tension" inside the walls of a cylinder:

Now that you understand the "tension" that is present in all of the material once the tank is pressurized, imagine what adding a corner does to this mix. A corner in tension tries to flatten itself out essentially. The corner becomes a point of concentrated stress and if the stress exceeds the yield point of the material it will fracture.
This is why typical air tanks have no corners, (i.e. the end caps are shaped more like a sphere rather than just a flat cap welded on). To wrap this all up into one sentence, a sphere would be the most optimal shape for an air tank and a cube would be the worst shape for an air tank.
I just ran a quick simulation on our tank with a similar "notch" installed with 0.125" wall thickness everywhere and the assumption of perfect welds. This shows where the stresses are highest (which essentially caused the rupture) and shows the exaggerated deformation:
Pre-Deformed:
Deformed after Pressure:
I would strongly suggest putting your creativity into other parts of your air suspension system and NOT modifying your air tanks in ANY way so that we can hopefully never see a thread like this again. 

