I don't mean to be a wet blanket but you can not measure toe-in in the manner you show. Between the deflection of the tire's bulge, rim straightness variation, lack of level ground causing improper suspension height and several other factors this won't even give you a SWAG.

The closest you can come manually is to:
Mark the center of the tires by either using chalk or a scribe while rotating the wheel.
Getting the car on a level surface.
Center the steering box.
Measure the difference between the front line and the rear line at the same height.
Do the math.

The straightness of the steering wheel only serves as a guide and not as an absolute.

Wear lines on the spindle are normal. If there are no ridges or "blueing" due to heat then there is no problem. I usually "lap" the spindle with some emery cloth to check for scoring.

1/4" toe-in is not excessive. Maybe not perfect but not enough to cause any problem.
What your tape is showing is apx. 1/2" but for some reason you use a "+" or "-" value which completely negates any accuracy.

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