Sig does have a way of making every pistol feel like it was custom molded to your hand - but Glocks "Just Work".
A thousand of an inch isn't such a theoretical number. It's about 25 microns, and I've shimmed one of my back-focusing photography lenses for less than that much (about 10 microns, to be specific). This is something that they ought to be able to machine for, but depending on the context, it might not leave much room for error.
If it's true, that's truly terrible design.
A safe example is bike chain. If each one is 1 inch +- 0.01", if every single one is +0.01" then ten links will be long by a tenth of an inch. And might pass QC on the bike when pedaled by hand- but it'll fall off when somebodies full bodyweight and 100hrs of wear is out into it.
For those who want an example, calculator, and demo see: https://www.smlease.com/entries/tolerance/tolerance-stackup-...
NB: using disks like the site does provides a clearer example.