Arvo,
Getting to the party a little late. I agree, way too much torque (120 Ft-Lb). You should never exceed 35 Ft-Lb on the axle nuts, ever. I don't doubt there's marks left on the outer races. If you get the wheel hub and outer races cleaned up post some pictures for us. Get the bearing stack and bits cleaned up also, lightly oil everything to protect them from the elements and take a close look at things. Look for pitting, discoloring, and brinelling on the rollers and races. The spline picture is hard for me to determine if there's significant damage, obviously they haven't seen grease in quite some time.
I would think new bearings are in order. But I wouldn't dive in and order any new wedding bands until after you get the new bearings and races installed and are able to check the preload. Get everything cleaned up and organized. You can order OEM wedding band sizes in increments of 0.10mm. If you need a different size than what you have I would order the closest step up and hand mill to the required thickness. I no longer use the 0.05mm shims, just my personal preference. I get preload set with wedding band only. You can decide on your own to use shims or not. If you do I recommend you making a record of how many and what sizes so you can be sure to retrieve all of them the next time you service the stack. Don't forget to order new grease seals too.
Before we move ahead, have we determined what caused the wobbling?