Jay,
The end of the shaft is perfect, the new bushing fits on it like a glove.
Tommy,
Yes, your pilot bushing may have needed replacing years ago.
However, I’m not suggesting that the input shaft pilot tip is bad. That’s an easy thing to check as you already mentioned. Just slide a new pilot bushing on the tip and see if there’s any play. Done!
Instead, I’m referring to the tip on the main shaft INSIDE the case. The main shaft tip is machined to fit perfectly inside the 15 roller bearings that live inside the input shaft. If the main shaft tip is heavily worn, then there would be play under load. Not end play, but radial play. The only way to inspect the end of the main shaft (inside the case) is to remove the input shaft and put a micrometer on it. Some are worn badly enough that the very end appears rounded instead of having a nice 90 degree cut.
Anyway, sounds like you have a plan.