Tim, when did I become a "dude" :)

"Never mind the fact that your opponent gets to have effectively 10% more value on his team because of our crummy algorithms."

I said less than 3% for hitters and less than 5% for pitchers. Lets look at an 85 PB team (right around average).

50 PB might make up the hitters, 35 PB the pitchers.

With the above mentioned tolerances(I"m going to use 2.5% and 4% for this example), we have 50 ± 1.5 and 35 ± 1.4 giving us 85 ± 2.9, or the equivalent of a variance of 3.4%

Even the best system that we could come up with with have some type of tolerance. If we can get to 2%, great, but remember thats only an improvement of 1.5%. No matter what happens, there will always be some variance, thus a even getting to 2% still might give a 3 point variance on the cap.