The Interapid has marks every .0005". When using the 2.75" (or is it 2.675"?) stylus it comes with the each mark shows 0005" of movement. However, the Interapid is of such high quality, and the marks are spaced far enough part, that it's easy to see when you have zero movement.
If you use the 5.5" stylus then the sensitivity is cut in half. Still, the indicator is so good and the marks are spaced enough so you can still see zero movement.
Direct reading off the lands and grooves is the most precise way to dial in--period. All the other methods can (and do) induce error. The question then becomes does that error matter?
With the Gordy "Grizzly" rods, you have clearance between the pilot one the bore as well as clearance between the rod and the pilot. If we assume .0002" of clearance, we could easily have .0004" of runout when we think we have none. Again, the question is will that matter?
With range rods, they have to be in perfect alignment and even then we aren't measuring the throat but the breech.
I use the Interapid. When I get a barrel dialed in I want it perfectly concentric with the spindle bore at the throat. I find that generally, I can get that 2-3" (ish) straight. The muzzle routinely rounds out .015 - .030" when the barrel is dialed this way.
I am still not convinced on prebore. Those little boring bars can deflect, and I think it would be easy to wind up with less support that using the reamer all the way. But I haven't fully sorted that part out.