Now, just because I was able to shoot that group once, does not mean I can repeat it all day, every day. Let's face the facts, most rifles will outshoot the average shooter. I have been at the range and have had friends say that their rifle or pistol isn't shooting well, and I have got behind it and fired a group that is nearly one ragged hole. Conversely, I have had a day where I cannot get anything to group, and a friend has used my firearm to punch out a clover leaf. Most accuracy issues are caused by the organic component that squeezes the trigger instead of the weapon.
Of course, there are exceptions. Some guns just do not like certain types of ammo, and as a result will not group worth a squat. Some people just do not shoot certain guns well. And some guns are just shit. Last summer I had the chance to shoot a brand new Marlin XT-22 heavy barreled .22 LR. Both myself and Schultz were pretty excited to get to shoot it, as it seemed like it could be a helluva bargain for less than 200 bucks. The owner equipped it with a straight 36x scope (read: overkill), and we took it to the range to sight it in for him. Much to our chagrin, neither Schultz or I could get the thing to group decently, no matter what ammo we tried. Our average group at 50 yards was 3 inches or greater. We tried every single type of .22 LR that we had on us, and none of it worked, the gun was just absolutely atrocious.
Recently, The Giant Ginger, Tom, and I have been having the discussion of what is acceptable for accuracy. TGG and I have decided that for a squirrel gun, 1/2 MOA is acceptable, and his AR groups that with the load we have decided on. That being said, what matters is having a gun that you are confident shooting, and can make hits with. Take my dads Magical .22-250, that damn gun just seems to be deadly with my dad shooting it, even if it groups 2-3 MOA with his loads. He knows the gun, he has shot it for years, and it works for him.
What it comes down to in the end, is what works for you, and what you feel comfortable shooting.