I fear that theory is causing us to lose sight of reality.
Whether the radius is used as the Hypotenuse, or not, 0.002" error on a 1",diameter, represents an angle of the third place of decimals of a degree, (At 10 minutes of a degree, the values of Sine and Tangent are virtually the same, and in the third place of decimals, so that the discrepancy is still a fraction of a micron, over 25 mm, )
Consequently, the horizontal displacement of the work relative to the cutting tool is of minimal importance for practical ,purposes..
Let us not suffer from delusions of ability to measure the effect of such miniscule dimensions, unless anyone has a woirkshop which is temperature and humidity controlled with instruments certified to a traceable suitable standard. (AKA Calibration Room )
.Surely the reason for placing the cutting edge of the tool on centre height is to optimise cutting conditions, rather than having a too high tool that rubs, rather than cuts.
Howard