The Spanish would not have rechambered and issued this rifle if it was unsafe for their troops. Metullurgy really improved around WWII. If your receiver is dated, that is something to keep in mind.
The same basic design was carried up to the M1896. I have seen factory M96's in 8X57 and then there are the 308 match versions.
As for 308 brass being "soft", I have not found LC, W/W, IMI, or R-P to be anything but excellent brass.
Of course the basic problem with all milsurplus rifles is you don't know much about the materials, processes, and history of the rifle. And that is the same with odd ball milsurplus ammunition. Just fire quality ammunition in the thing, don't hot load (and a lot of commerical ammunition is hotter than my LC match), act prudently.