I had to replace my cutlass bearing last year as it was just making too much noise and producing too much vibration.
Turns out I had about the same play as yours Shotchas.
Had it done at Marong Pt Marina, it was just not a case of getting the cutlass bearing in in any old way ...
they in fact put it on a lath and spun it down to the correct diameter.
It was then glued in place with industrial Loctite E.pox e glue.
The motor was then realigned...
What a difference that all made.

Won't tell you what it cost, but they saw me coming!