Basically that I don't know enough about PSA to say whether or not they would perform the way (or close to the way) a top tier manufacturer would (Noveske, DD, KA, etc..) at short distances. Which is what I meant by the "good enough" question. I would love to spend close to 1k for a pistol upper but if PSAs 7-10" pistol upper will perform pretty much the same at the short distances then I'd much rather use the rest of the money elsewhere. From what you are saying it seems like PSA is a good option for a pistol (short distance) upper.
I have had good luck with PSA stuff and have read basically nothing but good things in terms of quality. I have never bought any of their budget brand 'PTAC' as I have heard a lot of bad things about it. For the prices that are offered for the standard and even premium labeled PSA stuff, you really can't beat it.
As for a 10.5" pistol AR, I don't think you will see a direct correlation in dollars to improved performance from PSA to a premium brand. I have 10.5 pistol that I built with a Mid-State Firearms upper. It is just a budget upper I found from a company with good reviews. I built my whole pistol for about $450 and I am very satisfied. It shoots very accurate with a red dot out to 25 yards, better than I expected, I've never shot it any farther. If using for self defense, a handgun can't compare. You aren't going to find any shots longer than 25 yards inside a home so it is more than adequate.