When I said "a bit sloppy", I was mostly referring to the component lead vs FHS. Yes, I agree that Eagle's restring settings are pretty aggressive and make for tiny pads.
FWIW, the default drill list in Eagle is 0.5mm-1.5mm by tenths, plus a few larger holes, which seems fairly reasonable. I was fairly confused about the odd sizes it displayed until I went through the appropriate handsprings to display the list in millimeters instead of inches
I would assume most of the board houses are using metric drills--US number drills in that size range are a mess--and that they bump up to the next larger standard drill size when allowing for plating. For example, if you call for a 0.6mm hole and plating adds 1 mils == 0.0254mm, that they drill a 0.65mm or a 0.7mm and call it good.
Looking at
Harvey Tool (selected purely at random), they have carbide drills down to 0.05mm, but once you get to 0.5mm the metric sizes are all in 0.1mm increments.
What is a good allowance between hole & lead? 0.1mm, 0.2mm? Seems like I've been filling a fair number of over-sized holes with solder of late.