I have had my 1200s for nearly twenty years, and I was not the first owner. I have never oiled my bearings and do not plan on doing so.
One caveat with used 1200s, these tables are the skratch djs table of choice. It goes without saying that skratching is hard on a TT, especially when you don't know how to skratch. As a result there are many used 1200s that have been abused to the point of no return.
If the big dots on the platter do not remain perfectly still with the pitch set to 0 there is a problem with the table. If the dots move slowly but at constant speed then there maybe a problem with the pitch adjustment, this should be easily repairable.
The problem you are describing sounds worse, if the dots are still for a while and then suddenly begin to move then either the servo motor is shot or the strob is. In either case it is not good.
Contrary to belt drive table where wobble is common and usually can be repaired by instaling a new belt, with a Technics 1200 the problem means replacing a motor.
As for the Cardas litz wire upgrade, it is good. I upgrade one of my table myself. But before spending anymore on upgrades I would sell the table you have a buy a new straight out of the box. I personally would not bother with the KAB upgrades, rather spend a little more a decent cartridge.
Finally, do not give in to all the hoopla about belt vs direct drive, the 1200 are an amazing bargain. IMHO You would have to spend in the thousands to find an equivalent table. Unfortunately you were simply unlucky with the you got.