pyscodog, you are going to get a lot of answers on your question. The answer is more of a personal thing to you and your application. Accuracy of 1" is plenty accurate for coyote hunting. Most of the factory guns that are "tuned" will give 1" accuracy with hand loads, and many will do it with selected factory loads.
It is very easy with custom varmint rifles with "tuned" loads to shoot 3/8" groups and better with a set of wind flags.
Wind flags could improve the average guys shooting more than you could ever possibly imagine, and yet it is very seldom that you ever see them at the range.
It has been common for me to take the Rem Sporters and get them to shoot 1/2"-3/4" with all the tweeks that could be done to ammo and rifle. Some barrels will do better than others of course. All the 700 Varmits that I have owned, have shot 1/2" or less with all the tweeks to ammo and gun.
Of course, high powered scopes were used for load development along with wind flags. Some times the rifles will of course shoot a little better/worse due wind, coffee, mood swings, ADD, solar and/or lunar positions. Sex seems to have a more positive effect on good groups than one could ever imagine, seems to improve the ability to concentrate.
pyscodog, I suspect that the guy that was happy with only hitting the paper plate and the guy that was happy when not hitting a 55 gallon drum, probably has a wonderful wife/girlfriend, you simply can not improve on just being happy.