I'll admit for me personally it's nice to achieve those 1/2" groups at 100yds and my confidence level goes up especially when taking long shots but it also gives me a sense of accomplishment with my handloads and shows that my work and patience in reloading is paying off. I do have several rifles that will shoot 1/2" groups when i do my part however thats not my personal standard of accuracy for a hunting rifle.
It all depends on the rifle and the situation. I have stands that are in tight places with close shots say 100yds and less and then several that present long shots out past 300yds. If i'm hunting in tight quarters then the 6" 100yd group is fine for that particular rifle. However, for long range i require something better than that. I've taken several deer past 300yds but the majority of my shots are between 150 and 250yds so if i can get a rifle to consistently print 1" to 1 1/4" groups at 100yds then i'm very happy with that rifle and ready to hunt.