The giessele trigger pack on the tavor makes a giant difference, but yes, the stock trigger is horrible.
Hand loads help with accuracy a lot. I've never experienced 4 moa with it, but 2, yeah.
Practically speaking the difference between the 1 moa 10.5 AR and the 2 moa 16" Tavor, the velocity sacrifice of the short barrel will be more of an issue before the difference in accuracy would be. A 3 inch circle at 300 yards compared to a 6 inch circle but a muzzle velocity difference of about 400 fps can make a big difference down range.
Plugging the numbers:
With a 50 yard zero and using XM193 velocity data for both barrel length and the BC of that bullet.
Yes there is trade off but it has been proven 5.56 still does not fragment even with a 16in barrel. Depending on the round and distance Plays a big part but it's said for the best % chance to fragment you will need a 20in with most rounds. Distance does have a big part in it as we all know and even out of a 16in barrel the chance of fragment drops a lot. That's why they say max effective range is 400-500 yards do to bullet velocity. I have my 10.5 just for fun mostly and if need CQ and it was cheap to build. I do have a desert tech mdrx bulpup 5.56 and .308 which is not as proven as the tavor so far but more refined features imo.