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Doesn't look bad to me in the pics, you can always take a micrometer to it and measure if there is any significant difference between the area where the bearing/seals are and the part of the shaft adjacent to those areas.  Was it leaking?  The area where the bowl seal goes looks like it might be worn a touch but if it's not leaking then I would just go with a new seal and call it a day.   As far as frozen bowls that probably refers to something that had water in it, froze, and cracked.  I think they make a greasable insert/sleeve that goes into a bowl where the bearings go, after the bowl is machined of course.  I'd replace the bowl bearings since you have it out. 

Yes, they are like a sleeve, I believe the proper term is cutlass bearing.  They aren't expensive or hard to get, I'd just give Tom at Jetboat Performance a call, don't know where you are but that's where I buy my stuff.  How were the packing seals?  That would be something else I'd replace.  If  they were hard as a rock that would definitely cause a leak, although there are other areas, around the transom seal, how are the hoses, etc.