You mean no fragmentation on the router, but what about reassembly on remote end.
How was this confirmed? How was it tested? What platforms? What versions? What configurations? There's lots of small bit that could add into it. :-)
At a glance it looks like DF bit was not copied over to IPsec header. Again, it's just a shot in the dark :-)
I would really suggest opening a TAC case for this, this description tickled something in my memory, but I can't put my finger on it.