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The real question here is how far out do you plan on realistically engaging your target. Under 400m I'd stick with the AR and iron out the bugs. Over 400m the .308 is a far better round, and an M-14 would make much more sense.
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I don't understand this reasoning. The .308 is more effective at all distances than the .223 in terms of terminal ballistics. The range to the target is irrelevant when you're comparing these cartridges, because the 5.56 has no advantage over the .308 at any range to target.