When you pulled the hub, from the end of the splined axle shaft and the bearing race came out with it, the axle is just setting inside the knuckle. There is no bearing, I didn't try turning mine by hand so I dont know, I would think that the shaft wouldn't turn at all because the tranny is in park.
yeah, that's wierd that the noise stops when the brake is applied, do the pads look okay? maybe remove them and make sure the pad backs and pins are lubricated?
good luck