Scouseget,
When you harden metal (steel) it will be more resistant to wear, more difficult to machine, but also will become brittle and more prone to breakage. When you anneal metal (steel) it is in a softer state and easier to machine, but the yield strength (the ability to resist permanent deformation) is lowered to a point where it can become unusable for some applications. Normalizing metal is a process to relieve stresses in the metal in order to reduce warpage when it is machined. This is necessary when machining prestressed metal such as cold rolled steel.
Yield strength is a critical factor to consider when machining pivots. This is the major reason the steel must be tempered. Tempering will back the steel down from a hard brittle state to a state between soft and hard. The goal is to maximize the yield strength and still have sufficient wear characteristics.This state can also be called spring hardness. This will be the metal's optimum ability to resist deformation. When pressure (cutter pressure) is applied to the pivot, it will be less likely to break. Spring tempered steel will also provide a certain amount of protection from pivot breakage in the finished product.
If you have tried to machine a pivot from steel in a soft state you should notice that it cuts fairly easily but once you turn the diameter down to about .015 inches (.38mm), the pivot will bend and break under the cutter pressure. Even though the pivot is more difficult to cut when tempered to a spring hardness than with the metal in a soft state, the resistance to deformation and breakage provides a way to get the pivot from .015 inches (.38mm) down to the required .004 inches (.1mm).
There are alternative ways to reduce the pivot down to the required size such as grinding it down with a stone in a Jacot lathe, but machining it this way can run the risk of getting the pivot out of round and destroying its concentricity.
david