Originally Posted by
wannabemekon
Is this normal?
[…]
My suspicion is that there is a flaw in the hub -- like the threads where the freewheel mount is not perfectly in line with the axle.
You've correctly identified the issue: the freewheel body is not perfectly coaxial with the hub. But it's not a problem. The only time the wobble occurs is when you're coasting. When you're pedaling there is no wobble. So, if it bothers you, just make sure you never coast.