Would you be happy with this wheel?

TL;DR: I think this wheel is not spinning quite freely, but I just can't fix it. Would you be happy with how (well/badly) it spins?

I'm mainly trying to find out if there's something I am overlooking, or if somebody had a similar problem before (It's the M785 rear hub, modified with the M8000 axle replacement kit, which should be compatible). This weel was salvaged from a bike wreck and I tried my best to restore it. When I got it several spokes where broken and the axle was completely seized. I had to replace the entire axle assembly and I thought it ran fine for some time and then suddely it starting spinning like shit. I opened up the non-drive-side bearing cone and the balls somehow had pushed up the dust seal and had gotten on top of each other. No idea how that happened (There was no play in the axle and the locknut was still engaged). I set them all back and adjusted the pre-load accordingly and now it's in this sate. Here are a few things that are NOT the problem:

1. The brake rotor is not deformed and yet if I look at the caliper from top view I can see it moving around side to side. When you look closely at the video, you can see blinking reflections of the disk, like the rotor is gyrating around the axle. This also leads to some slight rubbing inside the caliper.

2. The pre-load is adjusted correctly.

3. The number of balls in the bearing is correct.

4. The axle itself is not bent or broken.

At this point my only line of thinking is that the wheel was involved in a crash so severe that the hub itself (or at least one of the bearing cup surfaces) is deformed. Anybody have seens something similar?