Well, military doctrine of my decade (90s) was that individual fire to 300m and section fire to 600m was acceptable performance.
Killing power at range is really delivered by section, platoon and company weapons and weapons dets.
The rifle has only ever really been a local protection weapon (within 600m by group fire).
Don't know if that doctrine has changed significantly?
I don't believe so, as I've heard Morpheus explain more than once here in the boards that the C7 weapons family has been doing exactly what it was designed to do, as part of a greater family of weapons SYSTEMS. Of a wealth of good sources here, he was pretty well placed to be in the know.
My point is to say that 6 moa at 300m equals 18 inches, an acceptable center of mass hit.
And while the rifle is likely capable of better mechanical accuracy, I DO believe the scope offers a good mix of close range speed coupled with effective engagement out to maximum personal range. I would EXPECT that part of their reasoning is also that accuracy predictably degrades under stress. I should imagine that they tested the efficacy of various sighting systems under induced stress conditions.
I would also imagine this isn't too far of from keeping with the Israeli doctrine.
It IS capable of hits at 500m, and we confirmed this in Valleyview, Alberta. However, the sight mechanism is a strongly limiting factor and accuracy is not reproducible shot after shot. 1 shot in 3 tended to strike the target.
All in, service rifle is a whole other ball game, and the shooter may be far better served refitting it with another sight system.
my .02c
That is just about acceptable for service use, ideally you require minute of angle capability, its then down to the rifleman to produce the goods. 4 inches at 200 equals 8 inches at 400 which means you can hold a fig 11 man target at the maximum individual engagement range. It wont win any long range prizes but its obviously meant to be more than just a CQB and car wreck plinking toy rifle.
The Israelis wouldnt produce a service rifle for mechanised troops (the reason behind bullpups) and not expect it to achieve a minimum acceptable standard. I suspect that the rifle and issued sight combo is more than capable of MOA, its just a case of training the troops to use it properly and that is something they certainly seem to be good at!