If I remember correctly, in Dave Bean's catalog he says not to bother sleeving the bearing housing as it usually does not work out well, because of lack of material thickness. The Loctite on the splines is to reduce fretting on properly mated splines, which as I understand, leads to problems like you are experiencing. With the looseness of the hub to the axle as you describe, you may be beyond acceptable specification already.
I do not know if there are measurements to take, rather than feeling that the splines are loose but if there were that could be helpful.