so is this wore out or what

Well it turns out that the thicker portion of the shaft fit the input BEARING I used in the torque converter register. I had to have the BEARING turned down to fit the smaller register hole of my 1965 273 crankshaft. The crank was not drilled for the 4 speed BUSHING, but was deep enough so that I didn't have to cut the trans input shaft.
Motor is all together now and I put it in the car last night. Now just need to hook it all up.
I agree that the input shaft looks like it was machined for a different bushing, but that seems like a lot more work than just getting the correct bushing to start with. I was told this trans was rebuilt about 3 years ago. Maybe that is when the machining took place.
Sorry about the crappy cell phone pic............