On the rod, it looks like they bored it just slightly off. But it looks like there is an equal job on the top (more material) which would make me think the distancce between centers is still correct (maintaining deck height). I have seen other rods that thin--some after market rods for the OS 35S were thinner than that. I should think that it would be OK since the wear part is the bushing.
On the piston, how loose is it? If there is a lot of rock, that is one thing. However, it is normal to have a "little", especially if you pull the piston down far enough that it is sticking out just slightly. I can do that with OS liners, with Magnums, even with a new piston/liner I have here for a PA 61. The cold compression fit is at the top, and when the piston heats up, it will expand to fit the bottom of the cylinder.