Drawing correct, the wheel bearing retainer holds the bearing in the hub first with the whole wheel rotating, obviously.
Then, the cush drive slides over the outside of the hub that the bearing is inside. The drive pegs push drive through the rubbers into wheel but the sprocket carrier can rotate on that hub as much as the cush drive will allow.
It's different to the 750 wheel that has two wheel bearings, plus an outrigger bearing in the cush drive/sprocket plate. Three in total to support the whole assembly, as opposed the two internal on the 500 wheels.