Disclaimer - Excuse the bad physics, its been a while since I studdied this stuff!
The problem is that, as the vice is tightened, all of the torque from the piece clamped at the top of the vice is borne by the joint between the steel screw and the iron head. This joint must be free to rotate, so it needs a little give to allow this. To bear the whole torque without significantly racking, this joint would need a LOT of reinforcing over a large length of the screw.
I cant see any simple way to spread the torque over a larger area of the components without a major bit of reengineering.