I've used a number of these soft end mandrels from ARC over a period of time the first use:

All I did with this one was drill and tap a 12mm hole 50mm deep to create a backstop for my lathe chucks. I didn't have any issue at all with using 'normal' drills or taps.
Another application was to make a mandrel for holding slitting saws (or "Shitting Saw" as an ex- boss's PA once titled a business investment proposal), but I probably didn't drill close to the shank for that application.
I have noticed that some are not as "nice" to machine as others, so maybe they are not consistently 'soft' from batch to batch.
Steve