Jim:
This certainly does get confusing but what you are saying conforms the ASME Y14.5M-94 as per page 193 in the standard.
But:
Datums are either designated or they must meet some criteria (I call this qualifying a datum). When they are designated, what you see is what you get as long as the feature meets Rule #1 if it applies. One would set up as if the feature was perfect.
When one qualifies a datum, it must meet a certain criteria to become that datum. If the feature does not meet the criteria, you do not have the datum. Once it meets the criteria, one must then assume then assume it is perfect.
Datums are like building a house. One cannot place a roof on it first. We must prgressively build up the datum set up. We cannot or should not reference a datum that we do not have yet.
Page 193 is not consistant to this concept. One either designates a datum or qualifies the feature but on page 193 (and in your example)it does not follow either. Is the datum designated? or does it have to been the circular runout tolerance to become the datum?
I hope that ASME deletes this page to be consistant but you are correct as far as the standard is concerned.
Please Designers, do not place this on a drawing. Yes, the shop floor people would implode but worst, we would like to ask YOU to explain it.
As far the measuring method on the shaft, both datums A & B have equal importance A-B so that I would chuck on one (don't care if it is A or B) a small distance in from the end and true up the other end the same distance in on the feature.
Hope this helps and not confuses.
Dave D.