Yeah, that's pretty far off. You'll need the special swingarm socket to loosen up the 27mm lock nuts. I used to use the calipers to measure the distance but found that fitting an allen wrench in each side and comparing 'wiggle' worked good enough. But yours is WAAAY off! I'd fix that.
There is a little bit of tech to this job, and like a lot of tasks on these bikes, is made over-complicated. The simplicity of it is (like wheel bearings - except the LS and monolever fronts) these are tapered roller bearings and need a little preload. The correct procedure calls for preloading them to 12 pounds, backing off, then 8 foot pounds and locking them with a torque of something like fifty or sixty foot pounds. You don't want those suckers coming loose!

But if you don't have a torque wrench to follow that procedure, then just tighten one side (no need to do this to both sides since tightening one will tighten the other as well) a little bit to preload the bearings some. Tapered roller bearings need just a little preload - you don't want them sloppy as then they'll wear quickly. Harley runs the same bearings and they specify zero preload, zero play and they don't have problems. In my old cars (all ran tapered rollers) I used to adjust front wheel bearings and there was never this complicated procedure - just a slight bit of tension was called for and that was good enough!
Perhaps someone skewed the swingarm to bring the wheel over so the fender didn't look so out of alignment? Best to just figure out what the real problem is and fix that! I've heard the subframes quite often are tweaked, and it's not that difficult to adjust, just requires two big guys and a long lever. Then it's easy.
