RE: How accurate do you feel you need to be?
I think the accuracy depends on the game and the realistic possibility of shooting at extended ranges.
Last night, I was out hunting groundhogs with my 22-250. On this particular farm, shots can range out to 500 yards (actually longer than that, but that's my max range). So, if you presume that a standing hog is 6" wide, and maybe 16" tall, if you dial in on him dead center, you have a 3" margin for error left and right, 8" vertically. So, at 100 yards, if you're shooting a 1" group, you're usually within .5" of center. At 500 yards, that puts you within a 2.5" radius with absolutely no wind. So, the moral of the story here is that if you're shooting 500 yards at a 6" target, you need a 1" group @ 100 consistently. You'll need quite a scope as well. I saw two hogs, one at 260 and the other at 190 - 2 shots, 2 kills.
Now, I deer hunt in some brushy areas where you couldn't possibly shoot over 100 yards. A buck's vitals are roughly the size of a milk jug. So, I'm very content to take my 30.06 carbine out there, or the .32 Win. Special.Both areabout a 3" shooters at 100 yards. Plenty good enough for the situation. 3-9 Bushnell isup to the task.
For deer hunting open fields, open woods, you have to be ready to shoot out to 400, so once again, you're trying to get a sub 1.5" gun in your hands.
Seriously, you don't need a .5 MOA tack driver to hunt deer with. But, you'll need something pretty close if you're trying to shoot deer at 300+.
You just need an accurate enough gun that when you take aim, and if you make a crisp, clean trigger break, and you're held center on target, that you get a vitalhit. For small game, almost any hit is a vital hit. For big game, you have to impact some vital organs. Common sense and experience will tell you what your realistic shots will be - just make sure have the right gun in your hand at the right time.