The closer the tolerances the better the resolution makes sense to me.

I have a 700 VTR in 308 and it isn't capable of BR or "built" varmint rifle accuracy, but it's pretty darn good for a factory rig in an injection molded stock. It's not as linear as the custom you mentioned, and has a .005" cutoff. Above that it's 1.5 MOA or so for five shots. But .004" and less will pour ten into an inch with many load combinations.