Following your advice, l redesigned!
I redesigned it to use steering wheel steering. This allowed me to put my feet in front of the front axle, giving proper 50% weight distribution. I designed this to have nearly perfect distribution, maybe biasing the rear by <5%. Also, this shortened the wheelbase considerably, now 46".
I'm also considering giving it a little caster angle by putting a wedge between the front axle and the frame.
And I did actually sit in a seat on the floor and put my legs on a 2x4 to see what felt comfortable for me, which is where I came up with the 40".
Note the steering mechanism in the drawings. I didn't put the pulleys or rope in because they would be a royal pain in CAD, but the pulleys go near the front steering brace on either side. The rope goes from one end of the axle, through one pulley, around the steering column (a few times), then back through the other pulley and to the other side of the axle.
I also added another 2x4 under the main frame for more support. This will be glued and screwed so the whole thing will act as a 4x4. This is actually stronger than a 2x6 because its thicker in the vertical direction, sorta like the idea behind I-beams. Also, I'm 150 lbs.
The brake location (moving it forward or backward) is gonna be decided once everything starts to come together, but I followed your advice putting them between my legs, this looks a lot better!
Frame:
http://img689.imageshack.us/img689/6241/cartframe.png
Frame+Everything (no wheels):
http://img109.imageshack.us/img109/577/cart.png
With steering rope (note the rope is hiding a little in part of the drawing):
http://img44.imageshack.us/img44/8100/42360660.png