“A tight 1911 is not necessarily an unreliable one. Nor is a loose one necessarily a reliable one.”
While it is possible for a loose 1911 to shoot accurately, you need to define ‘accurate’.
It will not shoot well enough to be used for higher level Bullseye. You need less than 2 inches at 50 yards for that. Over a 6 inch slide, that works out to about 0.007 of total allowed error in pointing. While that may seam like a lot, there are multiple interfaces with varying impacts on the total runout.
Bushing to slide does not need to move during normal operation and is a good spot to go very tight.
Bushing to barrel needs to move, so at least some clearance is required here.
Barrel hood to slide needs to move also, so clearance is required.
The barrel foot to slide stop pin needs clearance, but the slight wedging action at lockup makes the residual clearance in battery very small. It just needs to be a repeatable acion.
There is some tolerance between the slide stop pin and the frame that while small, is not zero.
In a 1911 the sites are on the slide, so if barrel to slide position is well controlled site alignment is a given.
The alignment between the slide stop pin and the barrel feet is also influenced by the slide to frame fit. If the barrel feet are cut in the frame the impact of the slide can be reduced, but the vertical position still has an impact on alignment.
There are a few more tolerance locations, but this gets the big ones.
Tightly fitted devices are always more vulnerable to foreign bodies. More clearance means the bodies can be expelled by normal operation.
While a loose gun is not necessarily more reliable, it is less likely to suffer from foreign body jams.