Agreed, an .050" aperature is very tiny. Not too good for hunting. The one you now have would be considered by most to be too small also. The reason a peep is so accurate is that your eye automatically centers the peep. Thereby allowing you to only focus on the front sight and target.
If you want to test an .050" peep, put a piece of electrical tap over the aperature and poke a hole in it with a large paperclip. That is about .050"or maybe even slightly bigger.