It might not be a problem at all to have play due to dampers wearing. As long as there is no metal to metal contact in that area the clutch will be fine according to my mechanic. My dampers were all broken at one place, and started to disintegrate into small pecks, but even then they might have lasted for a long time before catastrophic failure. Thus you may need to find another excuse for a new bike...

 

30 minutes of searching and I finally stumbled upon someone else with the same problem! I am servicing a 1997 KLX300R for a customer. I have no idea as to the mileage or hours. I have almost an identical amount of rotational free play in this clutch basket: approximately 1/2 tooth. I also have axial play of approximately 1mm (the face of the basket can separate from the face of the gear). Thank you for the linked write-up on how you completed your repair. It looks OEM.