RE: How accurate do you feel you should be?
Yep, gr8 nailed it... I've come to accept the 1" rule for every 10 yards as being fairly proficient, e.g., 1" groups at 10 yards, 2" groups at 20 yards, 3" groups at 30 yards, etc.
Can you go hunting and be "proficient" with less? Sure. Most of the guys I hunt around can't come anywhere close to this standard... but that's what I aim for, and can maintain pretty well.