What am I looking at in my rear hub?
There are bearing races on either side of the hub, and in my experience there is not nearly as much space between the bearings as your picture shows. Having replaced several axles in older hubs, it always seems as soon as you pull the axle out the bearings fall into the inner space of the hub.

The two bearings you can see are likely from this kind of problem. Remove all the bearings, clean and grease the races. Clean the bearings and replace them. Most of the time they are the same size on both sides but you will want to make sure. When you replace them there should only be a little bit of play/space between them. It's normally obvious if you've tried to put too many bearings on one side.