Yes, I did replace the front spindle bearing (the bearing on the business end of the spindle). It helped out a good bit.
It's not easy to remove the old one, but once I got it out, I could compare it to the new one and the difference was staggering. I can't believe the previous owner was able to make pens with a bearing that was that badly damaged.
The spindle shaft was not running true, which may have caused the early demise, so I replaced the bearing and spindle shaft all at once.
The biggest thing to watch out for is the cost of the rear (handwheel) bearing. I can't recall what it was, but it was NOT as cheap as the front bearing. Definitely a sticker-shocker, so I skipped it, and turns out it was fine anyhow. Note I bought directly from Delta, you may be able to get the same bearings from a bearing distributor.