jackpot only kinda means the game pays less frequently but the pays for wins are higher.
if you have cherry pays or similar that pay 2 coins, it's not a jackpot-only game. if the minimum pay is 10 coins, it's considered jackpot only.
the missing lever arm on the microswitch would cause the machine to shut down during payout because it doesn't think the payout counter is stepping up. The shutdown can be fiddled with my changing the timeout on the safety motor be the transformer or the circuit could be disabled completely. For home use, the safety doesn't matter unless you are letting people keep whatever coins come of the game. Worst that can happen is a payout problem dumps out the entire contents of the hopper to a pretty happy player.
if you have a hopper with the motor off to the side, you probably have a converted machine. Can you post pics of the entire front of the game and the top of the hopper?