No,gage block accuracy is needed if you want true distances between hole locations to be established. Whatever the diameter of your buttons is,they must be very accurate to that diameter.You need to think it through. And,wringing the buttons is not necessary(or possible
) because they make a single line contact with the gage blocks,not a full surface contact area which has to be wrung to get full contact from.
Suppose your button is .399"in diameter instead of .400". You set up 2" of gage blocks between your buttons. Let's say the other button is a true .400" to be simple.
If your .399" button is .001" too small,the holes will end up being a half thousanth too close together. If you realize this,you can make allowance for it with an extra 1/2 thousanth of gage block. But,best to just make them accurate in the first place. You might forget if you don't use the for a while,and mess up a job with sloppy buttons.
A micrometer certainly can be used if your hole location is only accurate to a tenth. I tend to think of the ultimate use of tools. The book "Precision Hole Location" by the Moore jigbore makers,shows them used with gage blocks to make master plates for clock making. In earlier times,micrometers were used less than now,and gages were used more. Seems odd,but I guess good mics were more expensive then. Probably a .0001" mic was more rare back then,too. I have seen plenty of simple old gages for 1". Just cast iron,with the jaws accurately lapped. Seems cumbersome,but that's what they had.
Pressure? Hardened steel blocks and hardened steel buttons do not compress for all practical purposes. Neither does water for all practical purposes. If it did,we could not have accurate hydraulic operated machines.
A CERTAIN amount of skill is,of course,needed,in setting up anything very accurate. No one remotely skilled is going to hammer gage blocks into position. Or,cause enough force to cause the buttons to sink into the workpiece on 1 side and lean. The little screw holding it in place would slip long before that happened.
I have an indicator that is accurate to ,000001". They are very expensive,and not common,nor do I use it much(nor did I pay full retail for it!),but they do exist. Mine is like new,used.