Speedometer evaluation?

The brass collar and a steel trust washer was pushed on to flush. A little bit of lengthwise movement is normal. Grease/crud builds up in that square port and maybe it could push the spindle lengthwise. Thats doubtful. You should clean it well before inserting a new cable. If the spindle doesn't defect and move the needle, try to wiggle the drum. It looks cocked in the last pic. Its mounted between to tiny bronze bushings. I've seen those severely worn only once and shared pictures of them here years ago. That was a earlier model speedometer with 100K+ miles on it. The shaft broke right at the front bushing.
Lets hope the marking you see on the drum is only the factories balancing scar.