Crow-feather, Sorry for the confusion. The example I used was for explaination purposes. You can plug in any velocity, bullet weight, ballistic coefficient, wind direction & speed, uphill, downhill, temperature, humidity, and barometric pressure to the Ballistic Explorer program and see what your rifle will really do down range. I've used this program for many different rifle calibers with excellent results. When I chart a particular load then go to the range, it will track almost perfect.
The point blank or sighting channel concept only addresses the vertical component (rise or drop). Group size and wind affects the vertical and horizontal components. This technique works very well for shooters that don't want to calculate holdover or windage, they just put the crosshairs on the vital spot and shoot. If you try to extend the range too far, the technique doesn't work very well because the vital area gets too big. In the example that jhm posted, 5 inches above and below (10") with the 2" group size (6" @ 300 yds) and a 10 mph wind (8") factored in, would give a vital area oval about 16" vertical and 14" horizontal. For me, that would probably be too big for a deer sized animal.
What you described is basicly the same thing without the group size and wind factor. If your gun shoots a perfect one hole group and there is no wind, then your concept works fine. Believe me, your horizontal spread will increase dramatically the farther the distance.
I used this technique and killed deer and or elk 7 years in a row in Colorado. All but one was a one shot kill. I now use a Burris Ballistic-Mil-Dot scope and calibrated it to my rifle. Using my laser rangefinder, all I have to do is hold the correct dot on the target and squeeze. It's good out to 500 yds, not that I would take a shot that far. Technology is wonderful!