Bangle 1 in my experience was only accurate to within 20m. 2.5 is extremely good accuracy.
The only application I can think of where you might need better than 2.5m accuracy is geo-caching. Different chips will have different accuracy, you cant expect them to be the same. These chips will be priced down to rock bottom, probably less than $1. At that price compromises will be made (eg quality control).
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