Yea, the axles seemed fine. The play is definitely from the hole. I do not know why I never checked before. Like you said it is a tight fit (even now), until everything is apart and you put only the bolt back in without the shock and link. Then the bolt wobbles. Its worn like an inverted cigar. The center is tight, but the ends are enlarged.
I was thinking of an aluminum bushing too. I can make my own and get a perfect fit. The other reason I asked is that I read (I think in Dave Bean's catalog that you cannot bush the bearing housing for a bearing - it has been tried and cracks.