A competition barrel, in a rifle with competition sights, in the hands of a high-level competitor who's shooting precision-crafter ammunition will have a lot of advantages. Having the barrel extension oversized, so that it's hard to insert in the upper, is not a useful thing for almost anyone else. It's like saying that the barrel extension, all by itself, makes the combination of rifle, sights, ammunition and shooter all that much better. It might help the competitor a bit, but it's not going to help Joe Schmo shoot his TulAmmo any closer to MOA.
As long as the barrel is kept centered in the upper while the barrel nut is properly torqued, there's no practical impact on the inherent accuracy of the barrel OR its alignment with the sights. Of course, if I were paying big bucks for a barrel that's supposed to be extremely accurate all by itself, I would want the barrel extension to be at least within specs - which means that it should be snug in the upper.
Frankly, I've yet to have an issue with a too-loose barrel extension. Most of the barrels I've installed have needed at least a little grease to allow me to insert the barrel in the upper, with the remainder needing not only some grease but being perfectly aligned from the beginning. To me, it's really a matter of whether or not a barrel that's "loose" is actually loose, or if it's just not "too tight" to go in without a light touch and some grease.