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Would it therefore be logical to believe that the axle is designed to be able to move laterally - i.e. left to right inside the bearings, possibly supported by the use of bearing grease on the axle?
Yes, the design allows for a bit of end float which is resisted by spring pressure. Campag Ultra Torque is the same, as are Zipp Vumas. Coincidentally, I just found the instructions for a 20+ year old square taper CQP BB which has no wave washer to control end float, you just shim it until it has <0.030"
If you push sideways on the pedals, all of the systems with some end float can make a banging noise as they flop from side to side. Obviously the ones with wave washers have to overcome the spring preload before moving, but that seems to be something a lot of people with off axis pedal thrust can achieve.
That's not very much at all then.
Would it therefore be logical to believe that the axle is designed to be able to move laterally - i.e. left to right inside the bearings, possibly supported by the use of bearing grease on the axle?