I say that people can shoot steel challenge or IDPA/USPSA matches to get a feel for what their skill level with some medium range distance shooting under pressure looks like.
My outlook has changed quite a bit, but I guess a person's outlook should change at least once within a decade to indicate they're learning. ;-)
Although I don't do it regularly, I've shot pistols out to 100yds. I seem to remember taking a handful of shots at like 150yds for fun before.
25yds is a solid distance for pistol, as a benchmark to demonstrate certain skills. It's a distance frequently used by many drills for exactly that reason. For example, the 700 Point Aggregate (aka "The Humbler").
For the average shooter, within roughly 5-15 yards, depending on skill, there is still a fair degree of fundamental issues that can be "masked" due to the distance. For the longest time, I could shoot alright at 15yds. Fist-sized groups for example, or quite a bit smaller if I tried hard. Though, at the time, stepping out to 25yds everything just completely fell off the rails for me. Now, it's still work, but having done it plenty before I know what's possible so the level of unease or disbelief isn't really there anymore.
Distance
Target Size
Time & Opportunity
These things are simply tools to modulate to push your skills. There are drills you could do at 3-7 yards to absolutely SMOKE your nervous system if you try. Try dime-sized dots on an 8.5x11 sheet of paper, at 7yds, on the shot timer and with an aspirational par time.
Same goes for distance. Try a much larger target like say an IPSC A or C zone.... but at 25 yards, and again on the shot timer and for a tough par time so speed is forced.
Work speed. Work accuracy. Try to max out your skill at both ends of the spectrum and you'll become a better shooter for it.