DTOM47,
For long range shooters velocity variation affects vertical point of impact (POI) on the target enough to matter and most of the guys shooting 1000 yards try to get the extreme spread down to about 10 fps if they can. But at short ranges (≈100 yards for a 1 moa rifle and 25 yards for a 4 moa pistol) the bullet doesn't have time for the difference in drop on the target due to normal differences in velocity variation to be discerned from random grouping error, even shooting from a machine rest.
Example:
Pistol. 148 grain 0.358" Lead Wadcutter.
700 fps
25 yard drop = 2.3 inches
50 yard drop = 9.4 inches
750 fps
25 yard drop = 2.0 inches
50 yard drop = 8.2 inches
So, a 0.3 inch error or 1.15 moa at 25 yards, hard to tell from the 4 moa group. At 50 yards a 1.2" drop, or 2.3 moa, which begins to grow the 4 moa group more oval. If you were using a bullet with a higher MV and higher ballistic coefficient than the wadcutter, you'd have less error from a 50 fps spread, though. The target velocity wadcutter is a good worst case for velocity variation sensitivity.
For a rifle shooting a 175 grain 30 cal Sierra MatchKing bullet:
2500 fps
100 yard drop = 2.9 inches
300 yard drop = 29.2 inches
1000 yard drop = 518.4 inches
2550 fps
100 yard drop = 2.8 inches
300 yard drop = 28.1 inches
1000 yard drop = 494.7 inches
So velocity variation vertical errors of:
100 yard error = 0.2 inches or 0.19 moa
300 yard error = 1.1 inches or 0.53 moa
1000 yard error = 23.7 inches or 2.26 moa
The worst handgun velocity variation I've heard of was on another board where a fellow using powder too slow for his bullet weight was getting variation 27% of maximum from a 1⅞ snubby. He had a peak of about 650 fps and a bottom of about 475 fps, representing a 1.9:1 difference in muzzle energy. This was due to inadequate and therefore irregular ignition of the powder causing the bullet position in the barrel at the pressure peak to be different enough to produce that result. A longer barrel wouldn't have shown it nearly as much.
He had three options.
1.) He could improve the load by going to a magnum primer, carefully trimming all his cases to exactly the same length and using a Redding Profile Crimp die to give him the highest bullet pull, and putting a polyester pillow ticking tuft over the powder column to keep it over the primer. Then he'd have to work the load up over again as these steps would increase pressure.
2.) He could go to a heavier bullet and just deal with the added recoil and hope the POI didn't rise too much for his fixed sight picture.
3.) He could go to a faster powder and just accept a lower peak velocity of about 600 fps, but one that was more consistent.