Agreed -- I'm about 95% sure that driven spline (the one in the wheel) is toast. Can't really see in these pics, but you can see that the teeth are pretty worn. Once they start to wear, they deteriorate quickly from there.
Take it out and take a better look.
The teeth on the drive spline (the one on the bike's final drive) are somewhat damaged but I've seen worse. You'll be fine with a new driven spline in the wheel and a thin coat of moly paste on both.
It's very hard to judge color balance in digital photos, but it does look like your bike is wearing one of the "soft" gold splines found in 82-84 shafties. The new part is more of a silver color and has a smoother finish. The new driven spline (Suzuki calls it "JOINT ASSY DRIVEN") is still in production and used on Suzuki's Boulevard C50 cruiser, so it's easiest to just order a new one from your favorite source for Suzuki bits.
You can also haunt fleaBay for a rear wheel and/or driven spline from any 1990+ Suzuki shaftie 800-1200cc -- Intruder, C50, GSX1100G, VX800, Madura, etc. Obviously that takes longer, and shipping a rear wheel is crazy expensive (although sellers are sometimes willing to remove the spline and hardware and just send that to you).
$140, but it'll basically be bulletproof from now on:
http://www.onlinecycleparts.com/oemparts/p/suzuki/64680-45113/joint-assy-driven
It's also worth replacing the lock washers and thrust plates, or at least flipping the old ones over and using a dab of moly paste on them.
And make sure you reinstall the bolts with Loctite. Even with the lock washers, they can back out without Loctite.