Yea, i agree on everything except for the ideal neck pocket bit diameter. In my experience, 3/8" diameter bit would make too small a radius in the neck pocket corner, and you'd see excessive "air" with the neck installed, at least with a "vintage" type neck (MIM classic or MIA reissue).
Here is the neck fit on a neck pocket done with a 1/2" diameter bit;
oh, and please don't rib me for overcutting the edge radius :) as this was body #1