Bill Kapaun

Why didn't you post the picture in your first post and then everybody could see it was a cartridge bearing hub and save about 20 posts & 4 days?
Ignore list

1989Pre 

When was the last time you saw a ball-bearing hub from Forte? If you don't know, then don't assume, and don't answer.

KerryIrons

Poor choice. If the hub is binding, that means you're forcing the bearings to roll through a gap that is smaller than their diameter. What do you think happens when you do that? Would that be good for the bearings OR the cups and cones? No.

Bike Gremlin

If I can choose between an optimal preload (i.e. no binding) and other extremes (whether it's binding, or play) - the choice is obvious.

But with the poor quality hubs, I can choose between play, binding, and "a bit rougher than butter-smooth turning" ("micro-binding?").

In my experience, the option I go with doesn't result in pitted cups, or cones.
I haven't tested and compared whether setting those (poor quality hubs) to have play right from the start would result in longer life. Maybe. Maybe not.

sweeks

Steel is elastic, and a small amount of binding is no different than what happens when the bearing balls are loaded. If I understand Jobst Brandt here, a small amount of binding is not only tolerated, but allows more even distribution of the load than a bearing with play, where the load is borne by fewer balls sequentially.