It shoots "okay" now. Three shot groups of 1 1/2". Sometimes, with handloads, 1".

I guess the question should have been, is the design of the 700 action such that bedding it would be likely to improve accuracy?

Second question would be with a setup like this where the barrel isn't free-floated, what to do in that area?

1) Free float

2) Nothing, leave the pressure point and air gap

3) Leave pressure point and fill in the air gap along the barrel with bedding compound.