Your statement about intermittent service is kicker when salt water is involved. This gives one nightmares if you have a crevice.
As posted by
sreid liquid nitriding is very good option.
420 SS can be ground and polished to a fine finish, < 8 RMA, needed for your application. I see your concern for machining a internal miniature O-ring grove. This could be facilitated by the use of 420 FM. I have no experience in nitriding the 420 FM material. Both materials also requires a high temperature heat treatment.
I would trend toward liquid nitrided 17/4 PH SS using the QPQ (Quench Polish Quench) process. The PH alloys use a low temperature heat treatment.
I have also used 22-13-5 for shafting if there is idle time in the presence of salt water. The only problem is that I haven’t nitrided any of it.
One other standalone alloy that I’ve had good success with is 440C. This alloy takes a very good surface finish. It takes a high temperature heat treatment.
Here is the process QPQ that I have used very suscessfully over the years
Another possibility is Electroless Nickel, probably Hi Phosphorous, on 17/4.
Contact these people about your application.
There are several alloys that could take the enviroment but I've never used them with a lip seal at your speeds.
Have you though about making the shaft and seal sleeve as a one piece affair?