The 96 was my second-favorite pistol platform for the .40 S&W. Since I'd packed an M-9 for many years in the military, I had no problem with the 96 and was pleasantly surprised by the excellent accuracy of mine. The size never bothered me, and I guess I'm one of the few folks for whose hands the Berettas were crafted -- for me, the 92/96 fit my hand well and point naturally.
As Shawn points out, the longer sight radius contributes to accuracy as well. Recoil is easily managed and I found the 96 was, for me, better in this department than my Glock 23.
Not having followed up on the 96 since selling mine, I was not aware of any frame-cracking issues.
Frankly, though, the one pistol that I believe is perfect for the .40 is the SIG-P226 ...
But, this is only one shooter's opinion (and I must qualify it by noting that I have pretty much given up on the .40, don't buy it or shoot it much anymore, having decided to invest my funds and efforts in other pistol calibers).