I suppose thats the big question. I guess part of what I don't like is I have this nice rifle that should be pretty accurate but when I shoot with iron sights at 100 yards I can't get 1-2" groups because I can't tell where the sight is positioned that well on the target.
Yep, what I've done in that situation before is this: mount a bigger scope on it for accuracy testing - 3-9x40, fixed 10, or even much larger. Once you're satisfied, then determine the purpose of the rifle. If CQB/Homestead defense, then slap a 1x optic on it, such as an ESD. If it's an all-purpose gun, slap a 1-4 or 1.5-6 on it. If it's for targets and varmints, leave it as is for that, with the big scope.
To me, an optic in this
1.5-6x config is the perfect choice for an "all-purpose" fighting/varmint rifle such as an AR15:
http://www.swfa.com/pc-7357-887-pentax-15-6x40-gameseeker-rifle-scope.aspx
Dials down to 1.5 (excellent QCB choice), dials up to 6 instead of 4, and the larger objective gives you less quick blackout and more light gathering in low light. 6 power is enough to really test you and your rifle's ability at 50 yards or a little more (a lot more if you have excellent eyesight). You may as well utilize all that empty space down to the rail/handguard with a larger objective, since the optic centerline has to be that high anyway, on an AR15.
I acquired two of the Sightron 1.5-6x42mms before they discontinued them and now wish I had bought about two more. Now the Pentax Gameseeker is the only scope in this config in the affordable category. Zeiss and Swarovski make nice scopes in this config, if you can spend that much. The 1.5-6x40s are the perfect scope config, not only for a fighting rifle, but also for a very large game rifle for big boomers, to give you a lot of eye relief and close-in field of view - good for Canada/Alaska and African Plains Game rifles. Just my un-experienced armchair quarterback opinion (from someone who's never been out of the country - lol!). I do shoot and hunt a lot though. Also a good scope setup for woods deer and rimfires too- pretty much anything really, come to think of it.