Craig, I'm still with Mcgyver on this one. No oil.
"Does it make a difference whether the indicator has jeweled pivot points or not?"
It should. The jeweled pivot points in theory should have less friction, but in real life they can be worn, out of round, cracked, incorrectly installed or sized wrong. Like everything there are different grades.
I've played with a number of watches with no jewels and I'm still amazed at how well they work. I've also worked on watches with too many jewels.
Here is a rotor off a watch with...."100 jewels" and a 21 jewel watch movement. ( 4 extra jewels added to a plate on the ratchet wheel, with room to add another 5 jewels.) These jewels have no function at all. Just there to add to the jewels count in the watch and I guess maybe you could use them as spares?
"Also, I note that Starrett says the following about their tool and instrument oil:
Instrument oil is an extra-fine lubricant made to our specifications and used in our factory to lubricate and protect our precision measuring tools and instruments."
It doesn't say what instruments they are using it on or how. Maybe they are just wiping the surfaces down for a corrosion protection? I could see a light wiping of the plunger and the rack on it, but not in the pivot points.
Try a good cleaning and reassemble dry. If it works all good. If not try the oil. Nothing to loose.
The unit I worked on had two springs. A coiled spring to return the plunger and a hairspring which brings the needle back to the zeroed position.
When pushing in on the plunger the mechanism is coupled with the needle and they move together. When you release the force on the plunger there is a "clutch" that disengages the plunger from the needle. The plunger returns easily under the force of the coil spring. The needle returns under the force of the hairspring. Not a lot of force here. The slightest amount of lubrication added drag to the needle. I tried a number of different watch maker lubricants and I also have access to a wide range of aviation products. Some worked a little better then others but not as good as dry. I also though that the hairspring may have worn out. Tried to come up with a test for that but in the end it worked good dry and the number of cycles on that dry pivot point is so low it made no sense to go any farther.
Sorry, I'm kinda draggin on......
My point in that last paragraph is that the "in plane bearing surface" shown in your photo is most likely on the gear that is driven by the rack. There is probably a heavy spring that is pulling that plunger and rack back.
If I'm looking at your pictures correctly , that plate on the bottom left retains the gear and shaft assembly? More importantly there should be some "endshake" when that plate is installed. The gear and shaft assembly should have a slight amount of play to move between the retained surfaces.
Final tips. After your final cleaning. Assemble off of a lint free surface. Use a loupe or magnifying glass and try to catch all the small little bits of un-seeable pieces of fibers and strands that still find there way inside. It is amazing what makes its way back into a clean assembly. Watchmakers use a puddy called rodico to dab and catch all the little pieces. I'm sure you could improvise.