The gap I could see when the shaft was in was just me looking at the top en of the v shape the seal makes, the pointy end was still mostly in contact with the shaft, just not tight. Enough to let hot oil weep through really - which made it useless enough to be replaced.
Bearings also were in fairly good shape so don't think I have any axle dramas - just worn seals and little groove on axle which the sleeve fixed. Nice. $40 extra per side.