I've recently started working on some tube amp designs and have been wondering how the hell I was going to cut the square holes for the transformers. This totally solves my dilemma.
Not necessarily. Those drill-attachment nibblers are intended for cutting thin roofing sheet metal and such. Something they are very good at in my experience, and in fact I don't know of anything else that can cope with corrugated iron roofing, since the cutting blade needs to stay perpendicular to the sheet. One thing to be careful of - the power nibbler produces large quantities of tiny crescent shaped metal swarf, which are extremely grabby-ouchy to skin and clothes.
Anyway, I'm pretty sure the drill attachment nibbler I have wouldn't work (or would break) if I tried to cut typical chassis thickness steel with it.
I know it's tedious, but lacking a big CNC punching machine you might be best to make the transformer holes the low tech way. Drill lines of 5mm or 1/4" holes as close to each other as you can, inside the final hole edge. Then cut the remaining metal bridges. Several ways to do that. One is to use the same drill bit in a hand electric drill, but drill diagonally, tilted 45 degrees or more in both directions along the line of drill holes. It's surprisingly effective.
Another is a big old pair of tough wire cutters - just chew the metal bridges away.
Then use a very coarse file to get rid of the bumps, then a finer file to get to your final hole outline. (scribed is best.)
Another way is a jigsaw. This is what I normally use these days. Drill 2 holes at diagonally opposite corners of the final square, just inside of the edge. Holes must be big enough to fit the jigsaw blade. Use square file (or the jigsaw, if you're good with it) to expand each hole to a flat where you want the cut edge to start. Use a blade tooth pitch fine enough that it has at least 1.5 teeth in the thickness of the sheet metal, or you're going to have a bad time. Cut the 4 sides starting at the holes.
If you don't want the chassis metal surface scratched up by the jigsaw foot (and the metal filings that will work under it), cover the area with gaffer tape first. Don't try to cut exactly on the line if you want a visually clean line, cut just inside it and file to finish.
There are a few things to watch out for with jig saws, if you've never used one before. Biggest one- NEVER pull the blade out of the cut with the saw still running. Turn the jigsaw off while still holding it down against the work. Wait till it fully stops, THEN remove it.