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I have noticed a grunfos recirculation pump on the hot water line, in the picture. Is the recirculation through the cold line? Unplug this pump and test the hot water heating again. The recirculation tee at the far end of the house my also be faulty.

Submersible pumps are usually multistage impellers and difussers. When they wear, they lose head capacity and cannot put up as much pressure or volume, sounds like you have a worn pump. There is a chance it could be a thread leak in the tubing or plastic in the well. I have had pumps similar to...

Why don't you try snakeing a peice of 1" PEX through the 4"? Doesn't sound like you need the 4" for volume. The PEX will resist the freezing fracture problem. Why is the 4" cracking, the pipe would have to be full when it freezes? Perhaps you can lay pipe just above the low spot.