Here's some supplemental pics:
System opened, showing the black section that contains the electronics to play video on the system (FMV unit) instead of just actual games:

The FMV unit is removed, no damage to system, no leaking capacitors, etc.

Not sure what this is done for - maybe a mod someone did - not sure what for though.

Anyway, did three fixes - used a cotton bud to gently caress the laser, to clear off any debris - that helped the disc reading a lot.
Lifted the spindle so it moved completely freely as designed

Replaced the rubber band with one from office elastic band - small one of course; as before:

(i've included a free one inside the console in case this one snaps, you have a replacement)
Video: