That's pretty close.
IMO, you be able to just feel the bind in the center, while turning the shaft with your fingers; but still be able to turn through the tight spot without too much effort.
The problem is that even .004" of vertical movement, which is too small to feel with your hands (at least for me), will still result in some play on the steering. You want that clearance going to exactly zero, or even a very slight preload.