I always replace the kickstart shaft bushing when replacing the layshaft bearing, and always thought the needle bearing idea had merit, although I have never done the conversion. My thought was that wear in the bush allowed the layshaft to cock slightly and cause failure of the ball bearing and sometimes the recess in the case.
I never considered the axial load and have always used the roller bearing. Now that I think about it, it makes sense. The flange on the bushing gives some axial control in one direction, but what controls movement in the opposite direction? Guess I might have to reconsider my choice of bearings. Lord knows Mick has a lot more experience with these than I.
I watched the Hudson video on gearbox rebuilding and was appalled that he completely ignored the kickstart bush. I haven't seen Mick Hemmings re-make, does he address this? Does he have a trick for removing the bushing?