Those look exactly like the wheel bearings did on my 1980 FJ40 and your spindle wear sounds the same. I ended up replacing the spindle with a better (used) one, because it's supposed to be tapered where it engages the inner race, and when the inner race has worn down the spindle, there's no way to accurately preload the bearing. Essentially, the inner race is bearing (verb) on a worn 'point' on the spindle, rather than spreading the load and friction (that prevents the race from spinning) across a wider/bigger area.
If your spindle is thoroughly roached out, I see no way you will ever get the bearing adjusted correctly. What's odd is that your spindle wear doesn't sound all that excessive, based on the measurements you provided.
Just my .02 - from what I experienced.
Can you post a photo of the spindle where the wear occurred?
Colo Springs, CO
'78 FJ40, '89 FJ62, '98 4Runner