Yes, you want that center bushing to be slightly too long, so when the assembly is tightened, the outer race of the top bearing goes again the ridge of the machined spot for it in the housing, the inner races of the top and bottom races press against the center bushing, and the outer race of the bottom bearing "floating" in the machined spot for it in the housing (so it's not pressing against the ridge in the housing). From the spindles I've worked on, the bearings are just a close fit, not a press fit, so when the bore in the housing is cleaned, and with a new bearing, you can push it in/out by hand, but it doesn't rattle around.