I had a feeling that the old bushing most likely needs to be replaced by the amount of wiggling happening even with the new piston pin. But it doesn't hurt to confirm it with a measurement. My dial bore gauge can only do 2-6" so I had to go cave man on it using telescoping gauges and the micrometer.
The nominal piston pin size is 1.625 inches; the old pin measures 1.2617, the new pin measures 1.2643. Using the telescoping gauge the bushing ID measures about 1.2674.
So the old pin clearance is about
1.2674-1.2617 = 0.0057
Using the new pin with the old bushing would give about
1.2674-1.1643 = 0.0031
clearance. The service manual says acceptable clearance is 0.0008 to 0.0014. New bushing needed, clearly.
Onward we go, hopefully.

