Looks like that's the way to go. When I did mine, I had to replace the axle stub seals so the diff had to come all the way off. I'd be tempted to unfasten the axles anyway to avoid stressing the old CV joint boots. And, yup, I set bushing depth by feel. Those bushings can't be manufactured to any precision tolerance at that price. Find some pipe or a socket that's just smaller than the bushing bore so you press it out as a unit rather than pressing out the core then cutting the bushing frame.

Sixto
83 300SD