I want to piggyback off COSteve's distinction between mechanical accuracy and practical accuracy.
A rifle capable of 1 MOA accuracy, shot by a shooter capable of holding 1 MOA accuracy will still put bullets outside of that 1" target occasionally, because the errant factors between the shooter and his equipment are multiplied by each other.
I remember zeroing a scope recently, and fretting over the fine tuning, as the group got smaller, each shot had to be critiqued more minutely as to whether its location on the target was due to the shooter or the equipment.
With a handgun, this effect is much greater. Closer range, larger diameter bullets, cruder sights, and the effectiveness of the shooter are more difficult to diagnose correctly. Even when all the fundamentals are there, a bullet might land an inch left of the point of aim at 25 yards, and its difficult to determine the reason. Most handun sights are not capable of being minutely adjusted to allow a great shooter of truly exploiting the mechanical accuracy, which then hiders the practical accuracy, as there is difficultly in determining the mechanical accuracy and its ergonomic relationship with the shooter.