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I think 100 yards is a good indicator. I know it's not long range but it's as far as I personally need to shoot. I'm convinced there is a psychological effect of not being able to see the shots land on the paper. I've often shot 3 or 5 shot groups around an inch on white paper which through the scope look crappy but then when I visit the target it ain't so bad.
I used to shoot an inch at 50 yards and think it was great (and actually it was for the time). An inch or just over at 100 yards is more than practical for a hunting rifle. I know some guys who won't actually shoot groups at all. They shoot one shot at each 1 inch black dot. Some of those shots are marginal, a lot are dead center.
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