"...the rack grade..." That's a CMP condition definition. Has nothing whatever to do with any CF firearm.
"...capable of at least 2 moa accuracy..." Not with crappy IVI ammo.
"...still carry it in reserve units..." Militia units are the very last to get any new kit.
"...out of 3 i..." Geezuz. You ever heard of sentences and punctuation?
"crappy IVI ammo"?!?!?
Sorry, but I don't think you know what you are talking about.
I was around when brand new C7's were issued, the original iron sight config. And I can safely attest that the new barrels and "crappy IVI ammo" were capable of BETTER groups than just about any normal human marksman.
Unless quality of the ammo has degraded, and barrels not replaced with new units since the late 1980's, both of which I doubt, then it's simply the skills that are lacking. Canadian made C7's and the ammo made for them, is as quality as it gets from any manufacturer.
That said, the early Elcan scope that I used, the original C79, seemed to me to have issues...holding a truly solid zero seemed to be uncommon.
But a new rifle, IVI ammo, and a really capable shooter, solid zero...I've seen a handful of sub-MOA groups. There's NOTHING crappy about the smallarms bought by the Canadian Forces. Maybe we keep some of them in service a bit too long, and yea, battleschool/BasicTraining guns do get badly abused, but we buy QUALITY in the first place. Frankly, I believe that the C7 itself may be the most accurate assault rifle in the world that's actually issued to armies.
If you want to be critical of a military rifle, you can cast an expert eye on the British bullpup known as the SA-80...two revisions, one major one by the expert German engineers from H&K and it STILL couldn't be turned into a firearm worthy of plinking fun...that the British Squaddies have to depend on that POS not only for rifle work, but also as a Section LMG just makes me shudder...yeesh! It's not "junk"...it's a damned deathtrap, IMO.
So what do British SAS and special forces use, if the SA-80 is so bad? They use Canadian made C8's of course!