The inner sleeve (spindle) is the contact point, not the outside of the bearings or bushes. There must be free movement of these inside the frame. Lateral play at the axle is enough to measure how much the bushes give. I failed scrutineering at Lakeside for my last ever race there way back when, when the guy heard a light clunk as he violently shook the bike by the back wheel, "swingarm bushes are stuffed mate, you're not allowed out". The bushes were almost new. I loaded the bike back up and went straight to the shop, measured 0.5mm end float and almost zero play in the bushes. A new ?81 Jota on the showroom floor had 2mm at the axle. I protested my exclusion and asked for my entry fees back, never heard back or got them. Found out years later that they had accepted my protest and ordered my entry refunded, someone didn't do it. Anyway to the point, my bike handled perfectly with the end float, and ?81 Jota handled fantastic with the allowance the needle rollers gave. On the other hand, if any CLQ members can remember the Coffs run where I borrowed a newly refurbished SF1, the swingarm bolt loosened and fell out of the right hand side of the frame on the way to Coffs, hoo haa that was interesting while overtaking a semi. I jammed a rock inside the brake pedal to limp into Coffs ad found a new nut, did it up super tight, but that too loosened and fell off, another rock got me back to Brisbane where investigation showed that the outside flats of the bushes had been powder coated and so the spindle was shorter and the frame clamped the bushes, as you describe, this meant that the swingarm bolt was not tight to the centre spindle but across the flats, allowing the nuts to loosen.