I have this sight and I have mixed reviews after using it for 1000+ rounds. For quick target acquisition, I really like the corners of the di-optic because my eyes naturally center the front sight at the corners. This has allowed me to get on target very quickly while running or with a quick weapon mount. However, just like you, I cannot get any decent groups using this sight. I know its an iron sight and as long as I hit the target I'm happy. I was able to get much better groups after going to a standard Troy rear sight, but then I couldn't get shit for target acquisition! To be honest, i'm 50/50 reagarding this sight. BUt then again, it is my back-up sight so if I ever need to use it, at least I know I will hit something!
Also, I originally had the plain di-optic but after little use, I went with the one with the Tritium inserts; much better for me regarding target acquisition. But still didn't group worth a shit. Jus like you stated, there is a lot of room for error with the sight picture. Especially if you shot nose-to-charging handle.