I have that on my unit, yes it can go bad if you do not grease it and mine was when I got my Geenie 56. It cost around $600.00 to replace when they are on sale $1800.00 if not.
The brass bushing that rides on the out put shaft of the engine is what wares out, it used to be replaceable. The new one is a complete set up, ie;... you can not replace the small brass bushing that rides on the out put shaft of the engine, it is molded to the large outer plate with the 10 or so balancing weights in it -- kind of like a torque converter in a transmission or better yet, a clutch set up in a old car like a 69 Nova with a 4 speed.
Its strange that a $4.00 piece is now $1800.00 just 'cause an engineer is a jerk!
Greg