I think that 2.5" groups at 25 yards with open sights sounds fine. That would indicate to me that the gun is working A-OK. These are not target guns, with that pound of metal slamming around inside.
I have gotten smaller groups than that, but not regularly. It's kind of random.
I always just assumed that the reason the groups were changing size is because I was doing a crummy job of shooting. But now I'm wondering if the top cover isn't flexing like in the video. Or maybe the whole receiver is flexing.
My Vector shoots WAY better when I have my giant CAC9 can on it. That might be damping out the flexing of the receiver in some way.
I have a Thompson M1A1, the receiver is the opposite of an UZI, it's a massive block of steel. The whole gun is so overbuilt its not even funny, it weighs the same as M1 Garand. I'm going to try bench-resting it and see what kind of groups I can wring out of it.