Water is one thing – it lubricates lignum vitae bearings – but grinding paste is another, so I would not consider it.
A single sealed bearing in the wheel is the obvious choice. No need for pin renewal if the shaft is a press fit (or at least non-moving) in the housings, so just another relatively cheap bearing change when the seals finally expire. A suitable grade of loctite could secure the bearing to pin and bearing in the wheel housing, so it is reasonably easily extracted for a bearing change.
Press out pin, replace bearing and pin. Job done. Cost will likely be far less than continued downtime for repair and a spare bearing can be held on stock. I would suggest a screwed pin with a close fit at the head end would retain the pin sufficiently rigid to avoid any abrasive wear to it