While the "notch" shaped form error was probably brought up for the simplicity of the example, and in the real world it is likely to be noticed and rejected as a visible defect, there are realistic cases where parts could be approved with a similarly calculated minimum distance resulting from the exact same reasons mentioned by axym. This can be calculated from the Resultant Conditions, which by the way also take Rule#1 form error into account. Instead of the notch-shaped discontinuity, the datum feature B hole could be produced ovoid, with the RAME size still being 10mm, but a cross-section of 10.4 at the direction towards the small hole. The accumulating distance of 5mm(RAME radius) + 0.4(ovoid form error) would be 5.4 from datum axis B. As a result, there could be a uniform wall thickness of 2.6 between the holes possibly without anyone noticing. If the tolerances were tighter there would be even a greater chance that a similar phenomenon would pass undetected during inspection.