Yep. With the 24" wrench and 3" offset of the example above, it's in the 1% range as you mentioned, which has to be within the tolerance range of torque for the fastener... So whether people pull perfectly straight or not, doesn't really matter. What casual users get wrong is that they hear someone who has done the math say "you can use a torque wrench with a crow's foot" and assume that means it can be inline with the torque wrench. *That* could cause a serious error.You are correct if in fact you pull perpendicular to the wrench. My observation is that people often don't. They tend to pull perpendicular to the 'line of action'. See post #286. Its a minor point either way.
Great discussion on the topic though, I had to go to my whiteboard and draw it out too, just to make sure I had the free body diagram right.
