It looks really clean. I would take it apart and repack it and put it back together and run it. I don't think the axle shaft moving back and forth a little is an issue.
Birfield wear is within the bell. The axle shaft moving back and forth some may be the snap ring. I always thought there was some play. I mean people have removed both and martacked so I doubt some in and out play is any sort of issue.
See you on the trail
Couple o' FJ40's, BJ70, PZJ77, UZJ100, TDI