That’s a solid explanation and it matches what’s seen in real rotating machinery practice—shaft voltage and circulating currents are a well-known cause of premature bearing damage in large motors and generator sets. In most industrial setups only one end of the shaft train is insulated (often a single OPE bearing or pedestal) so the induced voltage has a controlled path to ground via a brush or grounding ring, rather than repeatedly discharging through random points in the system. If both ends are insulated you can actually increase the potential difference across the shaft and make the discharge events more severe, which is why that configuration tends to accelerate bearing pitting and fluting rather than prevent it.
