I think I'm in the market for a new axle. I posted some pictures to a really popular trailer website and they said the chipped surface that the seals butt to are an issue, and my Brother-in-Law who is a very good mechanic immediately said the same thing when I sent him a picture. The seal that was leaking was perfectly intact on the hub, probably leaking due to that damaged edge.
It's going to be cheaper to buy a new axle than to replace the spindles. I can probably get spindles for $80-$100 but then they have to be welded on... Might as well buy an axle ready to go that I can install. Besides, the trailer isn't exactly mobile right now.
I basically have two options. I found the exact same axle online, only the hub-to-hub face measurement is 1" longer, $169. Or the local trailer shop says they'll build me an exact replica, $240. I don't think there is any problem with having the extra half inch on either side if I go with the axle online, they won't hit the fenders or anything. I don't know if there's something else it could hurt that I'm not thinking about though. I have an aching suspicion that the trailer shop's version of building me an axle is ordering an axle and welding the spring seats in the correct location. They might even put the 88" on it and tell me it's the same.