I understand what you've done. You have measured axial runout to some degree. Bearings would have to be properly preloaded to get a real TIR (total indicated runout).
Without proper preload, it's hard to tell what's moving.
Could be bearing wear, or it could be shaft wear underneath the inner race on the bearing. Or it could be the entire assembly moving because the bearings aren't tight enough (think of the inner cone rollers moving against the outer race like a ramp)
A closer approximation, other than relying on feel to set preload, is to measure endplay.
If you can, by adding/removing shims, get to about .001 endplay, it's about as good as you can get. Once you hit 0, there's no telling. You can't measure negative endplay. It could be exactly touching, or it could be under pressure.
Install the mag base on something that won't move in relation to the shaft, and position the point point somewhere on the axle/hub. Push, and pull the shaft......then note total movement from "front to back". This is your endplay.
Once you're satisfied with endplay, then you can start to figure out whether runout is acceptable.
It's tough to feel preload, or use a scale/torque wrench to measure preload on an axle that's engaged with the differential. You always have the drag from the differential to consider. I run into this all the time on drive axle bearing replacement.
All this being said...…..Improper preload, especially preload that's just too tight by a little bit, won't always cause failure immediately, or sometimes even never cause failure. It simply accelerates wear on the bearing.
Quite frankly, I'm surprised that Oliver spec'd these at 12ft/lb preload at the outer axle shaft. That's mondo torque for a preload. Be interesting to have seen what it measured fresh off the assembly line. The manual doesn't say anything about seating the bearing before measuring torque for preload. Usually you tighten them up to seat them, then back off, and slowly tighten to determine preload.
Somewhat germane to the discussion, just to give you an idea what's involved with setting bearings in other enviroments which are somewhat relevant.
file:///C:/Users/sam/Documents/10410_Manual Wheel Bearing Adj Procedures Sell Sheet.pdf