you should have NO play up and down. If you do, your wheel bearing is letting go.
I just went thru it. Noticed my tires sat just like you described, and the next day, got the ticking noise like a rock in the tire, and less than 5 miles later that tick turned into a growl/grind.
When the wheel bearing lets go, the entire hub is held in place by the brake caliper brackets. What ends up happening is the rotor will grind into the brake caliper bracket and pretty much ruin both the bracket and the rotor.
I caught mine quick enough that I was able to save my rotor, but it had some very obvious grinding marks on it.
For whatver reason, our trucks dont like bigger than stock tires and it tears wheel bearings up bad. I have a DYNATRAC fixed spindle conversion sitting in the back of the wifes car waiting for a day when I have some free time to install it.
I installed an OEM hub/bearing to get me by until I install the dynatrac. I could do a roadside repair of an OEM wheelbearing in less than 30 mins if I had the tools and spare parts in my hand.