Is a little driveline play like this normal on the more affordable Daiwa LT reels? 
the handle threads directly to the main gear, so the wiggle is in the drivetrain itself, not the handle.

 

 

Some play is always normal, even with the thread in handles.

Some do have more play than others. 

If its new reel, and you feel the play is excessive, then I would exchange it.

Looks like you have the BPS Carbonlite 2,0 reel.

I have two as well, and both of mine feel fine.

I've noticed this on a lot of lower end Daiwa reels. The only fix in my opinion is buy Shimano

27 minutes ago, thunderblack said:

I've noticed this on a lot of lower end Daiwa reels. The only fix in my opinion is buy Shimano

I’ve owned Shimanos at various price points... Sub $100 Shimanos are no stranger to handle wiggle, worse than this in a lot of cases. 

3 hours ago, mrpao said:

Some play is always normal, even with the thread in handles.

Some do have more play than others. 

If its new reel, and you feel the play is excessive, then I would exchange it.

Looks like you have the BPS Carbonlite 2,0 reel.

I have two as well, and both of mine feel fine.

Yep, it’s a Carbonlite (Diawa). Kind of an Exceler with a shallow spool. 
 

Your Carbonlites have similar wiggle? 

never seen a spinning reel nor a baitcaster that doesn't have some kind of handle wiggle or end-play, and it's not brand dependent.  

 

 

At the very least, you have slight play in the main-gear teeth mesh, and main shaft slide. 

At the greatest end, there's required tolerance between the handle hex shaft and the main gear.  

In the case of a hex shaft reel, you may feel rotation freeplay in the hex shaft gap - you can reduce that by tightening the handle nut on the opposite side to squeeze the nylon crown washer.  Anything you feel after that is in the gear teeth mesh.  

56 minutes ago, bulldog1935 said:

 

At the very least, you have slight play in the main-gear teeth mesh, and main shaft slide. 

 

 

 

This is really why I was asking. ?

 

Daiwa promotes their "digigear" so hard, and touts "perfect" mesh, so I wondered if they had actually gotten their machining to the point that it minimized play, or if this amount was still normal. 

I've never had that kind of play in any of my Daiwa spinning reels. I'd say something isn't right and if you can, get it replaced. 

2 hours ago, AmmoGuy said:

 

 

Your Carbonlites have similar wiggle? 

They have slight handle play but nothing that takes away from the fishing experience. When retrieving, its not noticeable on mine.

Like i said, every reel has some play- some a little more than others.

If this would make you feel better,

my Vanford 2000S, ballistic FW and Daiwa Kage LT all have a little play on them not as much as your but I can feel it moves back and forth. Just like @mrpaomentioned never notice it moving the lure or playing fish. 

5 hours ago, AmmoGuy said:

Daiwa promotes their "digigear" so hard, and touts "perfect" mesh, so I wondered if they had actually gotten their machining to the point that it minimized play, or if this amount was still normal. 

My LTs have a little bit of play, but I don't think its that much.  Since they're mass produced it varies from reel to reel and handle to handle.