I disassembled the trackball last night and each bearing (to my naked eye) moved very free and spun without any resistance. As soon as I put the ball in they sounds as if there is almost too much weight from the ball itself. I am investigating buying a Ultimarc 2 1/4" trackball to see if I get better results.
Dude, lube and break in before even
thinking of getting new one. Or else you'll have to lube and break in the new one, too. My wico 2 1/4" is worst at turning diagonal than any of my 3" ever were. Then again, I've played a lot more with my 3 inchers, so maybe my "baby" TB will improve to the 3" level after more breaking in. Note too, I bet how much the diagonal problem shows varies case by case even with the same type.
One of the problems/features of Happs TBs are that they are loud. Either they get a little quiter with more play, or I'm getting use to it.

Seriously, my happs is now not that much louder than my betson or wico, while at first it was a lot louder.
Besides the bearings, the ball and the rollers need to be broken in too. This can be done by (after re-lubing the bearings), with the TB together, press
firmly (but not all your weight) down on the ball and roll in a circular motion for a little bit, freespin, repeat. I think this rubs down the bumps (if any) off the rollers and ball, besides breaking in the bearings. (I thought I first read this at
TRBR, but can't find it there ATM.)
Other things to check if the motion is very bad:
Is the case on too tight, making the ball rub against it?
Does the case have any extra plastic pieces that should have been trimmed off?
Are the rollers and bearings fully seated down in their places, or sitting up on top of something?
Are the rollers over worn?
Are the rollers of different age or material?
I've heard of the first one, seen the second on my built-by-parts high ball happs TB (my second happs), caused the third, and read the last two in arcade manuals.