If you used roller bearings, you would possibly reduce the radial play somewhat, but you'd still have axial play problems – and that might be even worse! What the preload does (and which is why it's still the correct way to do it) is to optimise both radial and axial spindle play at the same time.
The real issue with this particular design is that there's no reference within the bored casting itself for the spindle position, other than the end plates. The very nice adjuster at the top of it, which looks ideal for preload adjustments, doesn't do a complete job – it only preloads the top bearing, whilst locking the bevel gear in position. The bottom bearing has no reference other than the bottom plate – and that's all wrong. It needs a solid reference above it, not below it!
So the current plan is to use the adjuster to preload both bearings, and the way to achieve that is to fit a sleeve inside the casting, with a cutout in the side of it for the driving gear. The sleeve fits between the top and bottom bearings (arranged appropriately) and when you do up the adjuster above the top bearing, it pulls the two bearings together and into alignment. This means of course that you have to find an alternative way of making sure that the bevel gear is locked in place, because the adjuster's final position is limited by the lower bearing position and won't lock it any more – but I don't think that this will be particularly complicated to arrange. So just to be clear about this – both bearings are now referenced against a fixed sleeve, and not the covers!
I get the impression that this may be more like what was originally intended for this head, quite frankly – the existing compromise for the most important bearing just seems wrong. Unfortunately there's no way you could fit a second bearing easily on the lower part of the spindle, because the bevel drive gear gets in the way, and there doesn't appear to be any way around that limitation – which is a shame.
But the revised arrangement should be quite good though – it will mean that you can reassemble the head and run it with the top cover removed, as it won't be retaining the spindle any more – and it will give you easy access to the adjuster.
Anyway, I hope that this is some food for thought, at least.
Regds, Steve