Okay, thanks for the input, all. I'm definitely going to try some different targets next time out - both the B2, and an 8" dot and see what happens. Due to cost, and apparent acceptable accuracy, I'll most likely be using the AE blackbox 50gr varmint.
I think the breathing may have been an issue, and maybe inconsistent cheek-weld. I noticed there may be minor parallax issues with the PA micro.
As for POI/POA, I have it set up to hit the top of the dot at 100yds. I graphed theoretical 60gr TAP ballistics below, the red line is the bottom of the red dot, and the top is the x-axis. I do see some theoretical benefit as you can use the dot as a hold-over. For example, at about 275-300yds the bullet will impact within an inch of the bottom of the dot. That said, you could do the same with a 2moa dot as well.
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