What is up with that countershaft sprocket design?

I just changed my chain and sprockets on an NX650 and had my fisrt encounter with that 2-bolt fixer plate setup that Honda uses. I am not happy . I have never seen so much play in a mounted sprocket . The clip ring setup on my KTM is rock solid and the old threaded countershaft, nut and lock washer worked just fine. Did Honda's cheese slip off their cracker?

Is some play normal?
Do I need to replace the fixer plate (washer) with every sprocket change, or when it's loose?
Do I grease the splines on the countershaft?

The sprocket that I took off, which I believe to be OEM was also loose. What's up with this design?

I've had 2 bikes and yes they are loose, I guess so they're free to float. I had to replace the lock washer on my newest bike because it was an old design and it didn't lock the sprocket on. At some point in the early years of the 650 they changed the bolt hole pattern which made the old lock washers obsolete. The old lock washers were really week and would wear quickly. If I were you I would get a new lock washer.

oh yeah, grease the splines. the service manual doesn't mention it, but it would be good practice.