I just realized we are talking about apples/oranges (not you in particular, Walt).
If you are using an NRA 25m pistol target, then 25m is a fairly long distance. A lot of sights cover the center ring at 75-85 feet.
I agree. I continue to wonder why so many gun makers continue to design their sights for what some call the COMBAT HOLD which some describe as Sight Image 3, below. (It's hard to get clear DEFINITION of "combat hold" on the next... A lot of folks talk about it, but few really describe it.
Just HITTING the gong is good enough for me -- I don't worry about groups!!
As you note, at greater distances -- maybe 30-50 yards or beyond, a small target can be obscured. (If someone is shooting at you from cover, and you've got to return fire -- and can't run away -- sight image 3, below, can be a problem.
An old Glock manual I've got shows the ideal Glock ideal target hold that looks like this:
Another internet site defines the "combat hold" like this the image below. No wonder folks get confused!
I like the last two images, no matter what they're called, and most of my handguns shoot where I want them to, when I do my part using that type of hold.
The BEAUTY of a red dot sight is that you just put the dot where you want the bullet to go... But red dots, especially the ones I can afford, aren't all that compact, and some require you to position the dot and
then move the gun to position the dot. It work fine, but it doesn't always assure you of quickly getting on target, and issue in self-defense situations. With the more expensive sight systems you just put the dot where you want the bullet(s) to go, as the dot doesn't move around in the view finder. Some of those sight may be awkward on a carry gun. (Or awkward to carry on a carry gun.)
I figure that if I ever have to use a handgun in self-defense, it's going to be up close and personal.