Is Kenmore HE3T shaft damaged?

[Todd Korpus]

My washer has been making a knocking sound (only at moderate speeds) for a while.  I initially thought it was the tub knocking something due to old shocks, however, the sound persisted after replacing the shocks.  I then discovered a small amount of play between the inner basket and outer tub which sounded similar to the knocking sound that I'd been hearing.  The washer sounds normal at high and low speeds and there are not any classic "rough" bearing noises so I disassembled everything for inspection.  Before purchasing a bearing and seal repair kit, I would like to know if the marks/wear on the drum shaft are indicative of damage or if this is normal?  I would hate to replace the bearings and seal only to have them quickly go bad again due to other damaged parts.  I also included a picture of the seal and bearings at the back of the tub.