My question is whether the stock axle flanges should be perfectly round along the outer edges or not. If I put the rear of the car on stands and run it in gear without the wheels on, it appears that the center wheel-locating part of the axle (yellow arrow) is steady and true, but the outer edge of the flange (blue arrow) is not true. Please see the attached image to help understand what I'm describing. The outer flange edge (blue) doesn't spin in a perfect circle, it wobbles. But the center (yellow) "appears" to spin in a perfect steady circle. I say appears because it is difficult to be certain, but I can't visually see any wobble or movement of it.

They are stock axles on a 65k mile all original 1972 Cutlass. The attached image is just something i grabbed to help explain my question.

 

The outer edge is not a controlled surface. The pilot (yellow arrow) is what centers the brake drum and wheel. That flange OD can be square and it wouldn't matter.