Loose fit long life
I have had the same feeling since I got the boat, also an O'Day 23 - The rudder fairly slops around in theGudgeons. I have wondered if a bushing was missing but have come to the conclusion that a loose fit is a good thing.
Once underway with a little pressure on the rudder any "slop" dissapears. putting the rudder on each year and removing it is easy with sich a loose fit.
So I think this is the way it is supposed to be.
james