Is this too much, do you think it could give me a timing/timing scatter problem?

 

It won't necessarily cause scatter problems, but the advance curve may increase or decrease by a degree or so during the transition from accel to decel. It's similar to having too much end play in your eccentric shaft say from like a broken or missing thrust bearing. I've used dizzies with a lot of up-down slop. Observe the spark with a timing light and decide for yourself if your dizzy needs replacement. Maybe it could be repaired, but I'm not sure what would need to be done exactly.

By the way, where are you observing the up-down play? Is it in the top of the shaft? If so, that's actually normal. If it's at the bottom, like you can grab the drive gear and it goes up and down, some play is normal, but a lot may signify a worn bearing.

 

I measured the play at the bottom of the shaft from the top of the drive gear to the bottom of the housing.

 

Then throw it back in the engine and check it with a timing light. If everything looks good, you can keep on using it.