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small amount of shaft play when pulled up and down and next to nothing when stationary
Yes, small amount up-and-down shaft play is normal.
But there should be no side-to-side play. Because if there is, the air gap might get too small, with metal-to-metal contact. In my experience it will still run fine even so. But Rallywtit's experience was:
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see if the shaft has a lot of play in it. One of the telltale signs is the tips on trigger will be shinny because the are contacting the outer ring do to shaft slop. I've had a matchbox style distributor go bad this way, the miss started right around 4500.
The trigger is the star-shaped wheel attached to the shaft