I think your all over it Terry. Axle ends and Wheel 1 all look to be good. Wheel 2 on the other hand appears to be chewed out as you described. I didn’t notice it from the outside, but I can clearly see the difference now between the two wheels now. I’ve attached pictures so other can see it also.
All gears appear to be in good condition. I was surprised to hear your assessment of the brass gears condition being acceptable but if your happy then I’m happy to reuse it. I did however notice that the axle assembly has a fair amount of side-to-side movement in it where the center gears are. Is that normal?