Do you set them up for 50 to 100 yards out even though there will never be a self defense justification at that distance
There's plenty of self defense at that distance. If someone is shooting at you with lethal force, then your response is justified. There is no tape measure declared as a maximum distance and the police don't unwind it to see if one shooting is legal and another isn't.
I sight in at whatever distance it takes to get the maximum flat travel of the bullet. It's known as point blank range, the bullet doesn't go up any more than it drops. You can hold dead on and the average projectile will usually rise and fall within about 4 inches, some out to 300m. I don't sight in short range and then have to compensate for even more bullet drop at the longer ranges.
Why? Its what you do for deer hunting - you never know were you will see it and at what range. As most deer are barely visible beyond 200 - 300 yards, if you can see it, put the crosshairs center mass and you should get a hit. In combat the research shows that most of the effective shooting is about 125 meters on average, some closer some further. Its a distance that the human eye can see distinct movement and actually react in time to place the shot.
As for close in shooting with a rifle and getting offset to hit - it's a six inch difference at most aiming at an 18 inch center of mass. If you are LEO working a hostage situation then you might need to know offset, with aggressors approaching I wouldn't worry about finesse. Rounds on target are what count.
One of the more interesting things that came out with the DC sniper shooting from the trunk of the car, was that most of the shots were around 200m. And the hype was that it had to be some highly trained and proficient sniper dude with extensive military experience. Talk to antelope hunters about their average shot and they would take 200m in a heartbeat if they could stalk and low crawl that close. Bean field whitetail hunters see 200m frequently and with a 2-9 variable they would get laughed at missing. Qualification on a military range requires hitting targets to 400 and further.
Life isn't a decaying suburbia with chain link ghettos or urban warfare, ask the citizens near our southern border what they have seen.