So, random error is part of the system (shooting, rifle, ammo, optic, position) dispersion. None random error shifts the entire cone of fire.the target is in MOA I assume because it's close to 1 inch increments which makes sense to people and is easy to measure.
unless I missed your point, my point was human error will possibly double (or more) a math error.
if the math error equates to 5.5" inches at 550yds, (1 Moa for the parallel) a 2 MOA shooter is at 11" with no other error like wind introduced.
So, a 0.5 mil system at 300 yards will hit a 10 inch target (cone is 5.4 inches at that distance).
You shift the entire point of aim by 0.3 mils and now when you think you are aiming at the center you are actually aiming 3.25 inches closer to the edge, but will still have an ok hit rate as the edge of the 5.4 inch cone only overlaps the edge of the target by 0.9 inches. (17%). (Edit: 15% by area if target is also a circle).
Take that 10 inch target to 500 yards and it is still large enough to contain the entire cone of 9 inches, but start aiming 0.3 mils (5.4 inches) off center and now 4.9 inches (54%) is not over the target. (Edit: 88% by area if target is also a circle).
On the 500 yard example above. If your error is 0.2 mils, you shift your 9 inch cone over 3.6 inches and 3.1 inches of it is off target (34%). (Edit: 58% by area if target is also a circle).
Your angular error compounds over distance, and thus an acceptable angular error in POI at 300 yards is not an acceptable angular error at 500 yards.